Chevron has announced a significant investment of over $7 billion US in its joint ventures in Venezuela with the goal of doubling oil production to approximately 600,000 barrels per day within the next five years. The U.S. oil giant revealed plans to expand its Petroindependencia joint venture to include two additional areas in the Carabobo region of Venezuela’s Orinoco Belt.
Chevron’s CEO, Mike Wirth, expressed confidence in Venezuela’s abundant resources and its attractiveness for long-term investments, emphasizing the company’s century-long presence in the country. This development follows U.S. President Donald Trump’s recent unveiling of a groundbreaking agreement involving a substantial portion of Venezuela’s oil reserves, where the U.S. government secured an equity stake in a private oil entity operating in the region. Although Chevron’s expansion is independent of this initiative, it aligns with Trump’s efforts to bolster oil output in Venezuela.
Venezuela, home to the world’s largest oil reserves, has seen its current production dwindle to around 1.25 million barrels per day, a sharp decline from over three million barrels per day achieved two decades ago due to mismanagement and underinvestment by the state-run firm PDVSA. U.S. Energy Secretary Chris Wright anticipates Venezuela’s total oil output to reach two million barrels per day by the end of the decade.
Chevron’s new agreements offer favorable fiscal, commercial, and legal terms to safeguard their long-term investments, with projected production costs below $20 US per barrel. The company’s existing infrastructure is well-equipped, and the expansion into new areas will leverage the current facilities and pipeline network, as stated by Wirth in an interview with CNBC.
In addition to Chevron, other entities such as ENI, KEO Capital, and Primavera, co-founded by billionaire Fred Ehrsam, are poised to finalize energy agreements in Venezuela. These agreements signify expansions that have been under negotiation as part of the transition of numerous energy contracts to new terms following a comprehensive oil reform passed in January.
The U.S. administration, following the ousting of former Venezuelan President Nicolás Maduro earlier this year, has advocated for a $100-billion US reconstruction initiative for Venezuela’s energy sector, urging American oil companies to invest in the country. While Chevron has maintained operations in Venezuela for a century, fellow oil giants ExxonMobil and ConocoPhillips withdrew from the nation in 2007 when their assets were nationalized under the previous government.
Chevron’s long-standing presence in Venezuela dates back to 1923, with its operations spread across the Orinoco Belt and western Zulia state. The company’s expansion, coupled with the U.S. involvement in North American Blue Energy Partners’ plan to develop extensive oilfields, is poised to reshape the oil landscape in the region, signaling a transformative phase for the industry.