Pacific Coast Energy Company (PCEC) has taken over operations of PDVSA's Delta and Cabimas blocks in Venezuela and plans to double current production of 19,300 bpd within six months, the California-based company said.

The agreements with Petróleos de Venezuela, S.A. (PDVSA) cover management and development of both blocks under Contratos de Participación Productiva (CPPs), which grant PCEC full operational authority — technical, financial and commercial. Operations began in the third quarter of 2026.

PCEC expects peak production to reach 150,000–160,000 bpd over a projected period of more than ten years, with cumulative gross output of one billion barrels over the life of the agreements. The redevelopment plan targets an increase in the average recovery factor from 13% currently to between 16% and 18%.

What is already spent and committed?

PCEC forecasts total capital investment of $3.5bn across the life of the agreements. The company reports it has already committed $80m to materials and services to secure critical oilfield equipment and support operations.

That early expenditure has involved:

• Contracts with 18 local suppliers
• Agreements with 35 service providers
• Employment of more than 1,000 local workers

The work programme is well underway on the ground. In Cabimas, on the eastern shore of Lake Maracaibo, crews have reactivated more than 50 wells and introduced four oil rigs to launch a larger campaign to bring 900 wells back online.

In the Delta block, PCEC has begun a campaign to replace electric submersible pumps (ESPs) across 37 wells. The first new ESP for the area arrived in less than a month after the company took control — the first ESP purchase for the block in eight years, according to PCEC.

What does the operator say?

CEO Klaus Hasbo said: "PCEC's early commitment of capital, management experience and technical expertise for the rejuvenation of these heavy crude assets is already producing results that exceed expectations."

"The talented local personnel we have brought on, empowered by updated equipment and our expertise in heavy crude extraction, are beginning to rehabilitate long-neglected energy fields in Delta and Cabimas."

Hasbo also credited the PDVSA team for its collaboration and said the company looks forward to "a long and productive partnership that enhances the well-being of all Venezuelans."

Who is PCEC?

The operator is headquartered in Santa Barbara County, California, with additional corporate offices in Houston, Texas, and Caracas. It maintains operational sites in Maturin and Cabimas, positioning staff close to both redeveloped asset clusters.

The company frames its role narrowly: technical, financial and commercial management of heavy crude rejuvenation under the CPP framework, with PDVSA retaining ownership of the national resource as licence holder.

What to watch

The near-term milestone is the six-month doubling target — lifting output from 19,300 bpd toward roughly 38,600 bpd. Beyond that, the pace of the 900-well reactivation programme in Cabimas and the ESP replacement schedule across the 37 Delta wells will test whether the 150,000–160,000 bpd peak trajectory holds. Sustained execution against the $3.5bn capital plan, and the stability of the CPP contractual framework itself, remain the items the market will monitor.