Chevron has announced plans to invest over $7 billion in its Venezuela joint ventures to double oil production to approximately 600,000 barrels per day within the next five years. The expansion will take place in the Carabobo region of Venezuela’s Orinoco Belt under new agreements with Chevron’s Petroindependencia joint venture.
Chevron’s CEO Mike Wirth expressed confidence in Venezuela’s resource potential and its attractiveness for long-term investment. This move follows U.S. President Donald Trump’s recent deal involving a significant portion of Venezuela’s oil reserves, reinforcing efforts to boost oil output in the country.
Venezuela, home to the world’s largest oil reserves, currently produces around 1.25 million barrels per day, a decline from its peak production of over three million barrels per day two decades ago due to mismanagement and underinvestment by state-run 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 offer favorable fiscal, commercial, and legal terms to safeguard long-term investments, with expected production costs below $20 per barrel. The company plans to leverage existing infrastructure for development in the new areas, building on its current facilities and pipeline infrastructure.
Apart from Chevron, other entities like ENI, KEO Capital, and Primavera are also set to sign energy agreements in Venezuela, aligning with a broader shift in energy contracts under a recent oil reform. This initiative, supported by the U.S., aims to encourage energy investments in Venezuela following political changes earlier this year.
While Chevron maintains a strong presence in Venezuela, other oil majors like ExxonMobil and ConocoPhillips exited the country in 2007 following nationalization of their assets. Chevron’s long-standing commitment to Venezuela reflects its strategic position in the region.
As Chevron expands its operations in Venezuela, the U.S. stake in North American Blue Energy Partners’ oilfields development project could reshape the oil industry in the country, according to energy experts. The evolving landscape underscores the changing dynamics in Venezuela’s oil sector and the emergence of new players in the market.