Last week, I kicked off my tenure as the President of the Chinese American Petroleum Association (CAPA). CAPA is a non-political, not-for-profit organization started 43 years ago by 22 oil and gas professionals from Taiwan. For more than four decades, CAPA has served a bridging role between the United States, Taiwan, and China, which opened its offshore for international investment in the early 1980s.
I was so moved to see top leaders from three of America’s main professional organizations (AAPG, SEG, and SPE) attending the Reception and Dinner event during the annual IMAGE conference. They were joined by some 140 guests from both sides of the Pacific.
The United States is the largest producer of oil and gas. China is the largest importer of oil and gas. I am hopeful that CAPA can be a small but positive force in the future energy world, as it focuses on drawing in the younger generation.
Now, let’s dig into two pieces of energy news from the past week.
Shangyou Nie
Editor, Well Read
Hunt Signs the First New Oil Deal to Enter Venezuela
Venezuelan Energy Minister Paula Henao at the IMAGE conference in Houston, Texas.
During the IMAGE conference last week in Houston, the Venezuelan government and state company PDVSA signed two oil deals: one with Hunt Oil for oil production participation and one with service giant SLB for country-wide reservoir studies.
Hunt’s oil deal represents the first new oil contract in Venezuela after President Nicolas Maduro was captured at the beginning of 2026. Hunt is a newcomer to the country.
Deal details:
According to an Instagram post from Venezuelan Oil Minister Paula Henao, under the guidance of Interim President Delcy Rodríguez, Henao attended the “Empowering Venezuela: Energy, Investment & Opportunity Strategic Forum” organized by AAPG and SEG during the IMAGE conference.
Henao also mentioned the two deals signed while attending IMAGE, writing: “As part of a productive work agenda in Houston, we achieved significant milestones for the country’s productive development through the signing of key alliances:
Hydrocarbon Production Participation Contract (CPPH): signed with Hunt, focusing on leveraging, recovering, and scaling up crude oil production.
Farmwork Alliance for Training and Technology Sovereignty: signed with SLB for the incorporation of cutting-edge technologies, comprehensive reservoir characterization, artificial intelligence, and specialized training for our industry.”
U.S. Under Secretary of Energy Kyle Haustveit also attended the Venezuela event during IMAGE.
According to Bloomberg, Houston-headquartered SLB signed a framework agreement with PDVSA for services “related to integrated reservoir studies throughout the country,” Henao said during the interview.
One Politico report said, “Several independent U.S. oil producers are expected to sign production contracts with Venezuela’s state-run oil company in the coming days,” referring to the IMAGE conference in Houston.
About Hunt Oil:
Hunt was started by Haroldson Lafayette (H.L.) Hunt 96 years ago in 1930.
Hunt was first incorporated in Delaware in 1934. Its first office was in Tyler, Texas.
Ray L. Hunt, the son of H.L. Hunt, became the new CEO of the company in 1974 after his father passed away.
Hunter Hunt, son of Ray, became CEO of Hunt Oil in 2010.
In 2025, Forbes ranked Hunt the #163 privately held company.
According to Forbes, Hunt had a revenue of $3.5 billion in 2025, with 4,500 employees.
Hunt has domestic production, in addition to international business in Peru, Morocco, and Tunisia.
In Peru, Hunt (35 percent) is the operator for Peru LNG (4.5 million tons per annum capacity), with partners MidOcean Energy (35 percent), Shell (20 percent), and Marubeni Corp. (10 percent).
Oil deals are behind gas deals, but moving:
Gas deals with foreign investors in Venezuela have moved faster than oil deals. So far, there has been one gas deal with Shell and one with BP.
In June, Shell signed agreements with PDVSA for Loran Phase 1.
In August, BP signed agreements with PDVSA for Loran Phase 2.
Both deals were signed to supply gas from Venezuela to an LNG export facility in neighboring Trinidad and Tobago.
The Venezuelan government and PDVSA are in more direct control of gas agreements than oil agreements, which are more complex and need the Trump Administration’s endorsement.
What they’re saying:
“With over a century of petroleum engineering experience, our nation is reconnecting with the world’s leading scientific and technical forums, promoting technology transfer and cooperation with the world’s top geological and geophysical societies,” said Henao via Instagram.
“We look forward to doing [revitalizing and growing Venezuela’s oil and gas production] with our unwavering commitment to train and advance the local workforce, to protect and preserve our surrounding environment, and to bring long-term benefits to the communities in which we will operate,” said Hunt Oil CEO, Hunter Hunt.
What to watch:
Will smaller independents move quickly to try to lock oil acreage ahead of the majors such as ExxonMobil?
What types of oil fields will be taken by the independents—heavy oil or conventional oil?
Continental Resources Acquires FireBird Energy and Expands in Argentina
JHVE Photo/Shutterstock.com
Another private, large independent oil company, Continental Resources, is on the move to secure more growth opportunities. It recently acquired FireBird in the Permian and is building a joint venture in Argentina. Both efforts are leveraging its strength in shale oil development and production.
About the FireBird acquisition:
On 20 August, Continental Resources announced that it has signed an agreement to acquire FireBird Energy II.
As part of this deal, Continental Resources will add 54,000 net acres in the Midland sub-basin in the Permian in Texas.
With more than six stacked-pay reservoirs, Continental estimated total net resource acres of 147,000 acres.
These assets produce about 32,000 barrels of oil equivalent per day, 69 percent oil.
FireBird operated 95 percent of the assets.
With this transaction, Continental will grow its Midland portfolio by 40 percent.
The two private companies did not disclose the deal price.
The transaction is expected to close in September.
About FireBird Energy II:
Founded in 2019 by Travis Thompson, FireBird is backed by private equity firm Quantum Capital.
It focuses on upstream oil and gas assets in the Midland sub-basin in the Permian, Texas
In November 2022, FireBird (I) was acquired by Diamondback Energy.
The FireBird management team has headquarters in Fort Worth and Midland.
Quantum is a PE company established in 1998, investing in oil and gas projects across the value chain. To see its $34 billion investment portfolio, refer here.
About the Argentina deal:
On the same day, Continental Resources signed a Heads of Agreement (HOA) to acquire a 50 percent interest in Phoenix Global Resources from Mercuria Energy Group, to form a 50/50 joint venture.
The JV will focus on continued development and expansion of Phoenix’s unconventional portfolio in the Vaca Muerta in Argentina.
According to a press release by Mercuria, the JV will grow production from its current 28,000 barrels of oil equivalent per day to 100,000 barrels of oil equivalent per day by 2031.
The JV will hold 163,000 net acres across six blocks in the Vaca Muerta.
Geneva-based Mercuria is also partnering with Continental to build the 452-megawatt, gas-fired power plant, Pecos Power Plant, in West Texas.
What they’re saying:
“We are excited about what we are building in the Permian and believe this transaction positions Continental for continued long-term growth and value creation in one of America’s premier oil-producing basins,” said Doug Lawler, President and CEO of Continental Resources.
“Bringing Continental into Phoenix as a JV operating partner adds decades of unconventional development and operating expertise that will strengthen our capabilities as we enter the next phase of growth,” said Pablo Bizzotto, CEO of Phoenix Global Resources.
“The reforms led by President Milei and his administration generated our interest in Argentina and strengthened our confidence in its future, ultimately helping pave the way for this significant partnership,” said Lawler.
What to watch:
Normally, a volatile oil price environment similar to current market conditions makes it difficult to conduct M&A deals, as sellers and buyers often can’t easily agree on the transaction price.
There might also be conditional clauses in the agreements that help to protect the interests of both sellers and buyers.
American independent producers have spearheaded the technology innovations leading to the shale revolution since 2008. These companies may have innovative commercial agreements to help them grow domestically and abroad.
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