Chevron has announced plans to invest more than $7 billion in its joint ventures in Venezuela to double oil production to around 600,000 barrels per day over the next five years. The U.S. oil giant stated that its Petroindependencia joint venture will expand to include two additional areas in the Carabobo region within Venezuela’s Orinoco Belt.
Chevron’s CEO Mike Wirth expressed confidence in Venezuela’s abundant resources and its potential for long-term investment. This move by Chevron follows a recent unprecedented deal involving a significant portion of Venezuela’s oil reserves, where the U.S. government acquired an equity stake in a private oil company operating in the country. Although separate from this agreement, Chevron’s expansion aligns with efforts to boost oil production in Venezuela.
Venezuela holds the world’s largest oil reserves, yet its current daily output is only around 1.25 million barrels, a sharp decline from over three million barrels per day two decades ago due to mismanagement and underinvestment by the state-run oil firm PDVSA. The country aims to increase its total oil production to two million barrels per day by the end of the decade, according to U.S. Energy Secretary Chris Wright.
Chevron’s new agreements in Venezuela offer favorable fiscal, commercial, and legal terms to safeguard long-term investments, with projected production costs below $20 per barrel. The company plans to leverage existing infrastructure and facilities for development in the newly acquired areas.
In addition to Chevron, other energy companies like ENI and investor KEO Capital are poised to sign energy agreements in Venezuela. These agreements are part of a broader energy contract migration to new terms under an oil reform initiative approved in January. U.S. Energy Secretary Wright and Venezuela’s oil minister, Paula Henao, are expected to oversee the signing of these contracts.
Following the U.S.-led removal of former Venezuelan President Nicolás Maduro earlier this year, President Trump advocated for a $100-billion reconstruction plan for Venezuela’s energy sector, urging U.S. oil firms to invest in the country.
Chevron, with a century-long presence in Venezuela, remains committed to expanding its operations in the country. While some oil majors like ExxonMobil and ConocoPhillips exited Venezuela when their assets were nationalized in 2007, Chevron continues its strategic investments in the region.
As Chevron strengthens its position in Venezuela, the U.S. stake in North American Blue Energy Partners’ venture to develop 17 oilfields holding significant crude reserves is expected to reshape the oil industry landscape in Venezuela, creating a major player in the market.