Chevron has announced plans to invest over $7 billion in its joint ventures in Venezuela to increase oil production to around 600,000 barrels per day within the next five years. The expansion will involve Chevron’s Petroindependencia joint venture expanding into two adjacent areas in the Carabobo region of Venezuela’s Orinoco Belt.
Chevron’s CEO, Mike Wirth, expressed confidence in Venezuela’s resource potential and competitive investment environment. This development follows U.S. President Donald Trump’s recent 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. Chevron’s expansion is independent of this deal but aligns with the broader effort to boost oil output in Venezuela.
Venezuela, with the world’s largest oil reserves, currently produces approximately 1.25 million barrels per day, a significant decrease from its peak of 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 output 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 include 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 for the expansion, ensuring cost-effective growth. Chevron executives, including Wirth, recently met with interim Venezuelan President Delcy Rodriguez to discuss the expansion plans.
Additional energy agreements are expected to be signed by companies like ENI, KEO Capital, and Primavera in Venezuela, underlining renewed interest in the country’s energy sector. The push for energy investment in Venezuela follows political developments earlier this year and aims to revitalize the country’s energy industry with substantial foreign involvement.
While Chevron has maintained a presence in Venezuela since 1923, other major oil companies like ExxonMobil and ConocoPhillips exited the country in 2007 when their assets were nationalized. As Chevron expands its operations in Venezuela, the evolving landscape of the country’s energy sector is attracting attention and investment on a global scale.