Oil executive Harold Hamm announced on Wednesday that his company, Continental Resources, signed a preliminary deal with Venezuela’s state oil company to develop and operate a large block in the Orinoco Belt.

The agreement covers the Ayacucho 2 Block, spanning 126,000 acres with an estimated 30 billion barrels of resources in place. Hamm revealed the memorandum of understanding at the Group of 20 energy ministers meeting in Houston.

The deal positions Continental to pursue a full production-sharing contract in the coming weeks. It comes as the Trump administration encourages American firms to expand operations in Venezuela to boost hemispheric energy production.

Hamm, a longtime Trump supporter who donated millions to the president’s campaigns, described the opportunity as significant. “This is a huge resource in Venezuela,” he said. “We know this is a great opportunity.”

U.S. Energy Secretary Chris Wright and Interior Secretary Doug Burgum attended the announcement, along with Venezuelan officials. Wright called it a milestone in positioning the Western Hemisphere as the center of the global energy system.

The agreement stands apart from a broader oil pact the Trump administration announced last month. It follows Chevron’s plans to more than double its Venezuelan output over the next five years.

Venezuela’s heavy crude requires specialized handling, an area where few U.S. shale producers have extensive experience. Continental, known for its shale operations, views the project as a challenge worth pursuing.

Earlier this year, Hamm participated in White House discussions on Venezuelan energy investments. The Trump administration has promoted such deals as part of efforts to secure stable, low-cost oil supplies in the region while supporting economic recovery there.

The preliminary pact reflects growing U.S. company interest in Venezuela under current policy conditions.