Pacific Coast Energy Company said it began operating the Delta and Cabimas oil fields under its agreements with PDVSA during the third quarter of 2026 and outlined a phased redevelopment program.
Published by Allstream Insiders
Allstream Insiders Summary
Pacific Coast Energy Company, or PCEC, has announced strategic agreements with Petróleos de Venezuela, S.A. (PDVSA) covering the rejuvenation and development of the Delta and Cabimas oil fields in Venezuela. PCEC said the contracts give it operational control and responsibility for the technical, financial and commercial management of the projects.
PCEC projects total capital investment of $3.5 billion over the life of the contracts. The company said it took over field operations during the third quarter of 2026 and is targeting production growth from a reported baseline of 19,300 barrels per day to approximately 40,000 barrels per day within six months. The capital, timing and production figures are company-stated projections and targets, not completed results.
What PCEC announced with PDVSA
The company said its agreements with PDVSA concern two existing oil-field areas: Delta and Cabimas. According to PCEC, the arrangements are structured as Contratos de Participación Productiva, or CPPs, and give the company responsibility for operating and managing the redevelopment program.
PCEC did not disclose its ownership interest, the complete commercial terms of the CPPs or a field-by-field capital allocation. Those details remain material to evaluating how the redevelopment program may be financed and executed.
Field work PCEC says is underway
PCEC described early operating activity in both field areas, including well reactivations, rig mobilization and artificial-lift work. The company reported that it had:
- reactivated more than 50 wells;
- added four oil rigs as it begins a reported 900-well reactivation program in Cabimas;
- initiated a 37-well electric submersible pump change-out campaign in Delta;
- committed more than $80 million for materials and services through 18 local material suppliers and 35 local service providers; and
- engaged more than 1,000 local personnel.
PCEC also said the first new electric submersible pump had been delivered to the Delta block within 30 days of the operational handover and described it as the block’s first new pump of that type in eight years. The release does not identify the rigs, pump supplier, individual wells, service providers or the terms of any related contracts.
PCEC’s reported redevelopment outlook
| Item | Company-reported detail |
|---|---|
| Reported production baseline | 19,300 barrels per day |
| Near-term production target | Approximately 40,000 barrels per day within six months |
| Longer-term production forecast | 150,000 to 160,000 barrels per day at peak production for more than 10 years |
| Total capital projection | $3.5 billion over the life of the contracts |
| Program-scale production projection | More than 1 billion cumulative gross barrels, according to PCEC’s redevelopment plan |
| Recovery-factor objective | Increase average recovery from 13% to 16% to 18%, according to the company |
These figures describe PCEC’s forward-looking redevelopment plan. They should not be read as current production, completed capital spending or independently verified field performance. The company did not provide a field-by-field production forecast, a full capital schedule or a timeline for reaching the longer-term production range.
Allstream perspective: an early operating update attached to a long-term redevelopment plan
Allstream perspective: PCEC’s announcement combines a reported operational handover with early work on existing heavy-oil assets, including well reactivations, rig deployment and electric-submersible-pump replacements. The company has also identified local materials and service commitments, but has not named the suppliers or disclosed contract values by scope.
The larger production and capital figures remain company projections. For infrastructure and oilfield-service markets, decision-useful next disclosures would include field-specific development plans, procurement awards, drilling and workover schedules, vendor identities, funding details and independently reported operating results. Until then, the program is best tracked as an announced redevelopment plan with early company-reported operating activity—not as confirmation of specific construction or service awards.
