Chevron plans to invest over $7 billion in its joint ventures in Venezuela to boost oil production to approximately 600,000 barrels per day within the next five years, the U.S. oil giant announced on Wednesday. The expansion of Chevron’s Petroindependencia joint venture will encompass two additional areas in the Carabobo region of Venezuela’s Orinoco Belt.
“Chevron has a longstanding presence in Venezuela for over a century, and our increased commitment reflects our confidence in the country’s rich resource potential and its attractiveness for long-term investments,” stated Chevron CEO Mike Wirth.
This move by Chevron comes shortly after U.S. President Donald Trump revealed a significant agreement involving a substantial portion of Venezuela’s oil reserves, with the U.S. government acquiring an equity stake in a private oil company operating in the country. While separate from this initiative, Chevron’s expansion aligns with Trump’s efforts to enhance oil output in Venezuela.
According to White House spokesperson Anna Kelly, oil from this deal could reach U.S. reserves as early as November. Venezuela holds the world’s largest oil reserves, yet its current daily production stands at only around 1.25 million barrels, a sharp decline from over three million barrels two decades ago due to years of mismanagement by state-run oil firm PDVSA.
Chevron’s new agreements offer improved fiscal, commercial, and legal terms to safeguard long-term investments, with projected production costs of less than $20 per barrel. The joint venture’s infrastructure is well-maintained, and the development in the new areas will leverage existing facilities and pipeline infrastructure, as mentioned by Wirth during a CNBC interview.
In addition to Chevron, other companies like ENI, KEO Capital, and Primavera are expected to sign energy agreements in Venezuela imminently. These agreements, part of a broader oil reform approved in January, involve project expansions that have been under negotiation for some time.
Following the removal of former Venezuelan President Nicolás Maduro, Trump has advocated for a $100 billion reconstruction plan for Venezuela’s energy sector, encouraging U.S. oil companies to invest in the country. Unlike Chevron, ExxonMobil and ConocoPhillips withdrew from Venezuela in 2007 when their assets were nationalized under the previous administration of President Hugo Chávez.
Chevron, with operations in Venezuela since 1923, operates three joint ventures in the country. While expanding its presence in Venezuela, the U.S. stake in North American Blue Energy Partners, aiming to develop oilfields holding 64 billion barrels of crude reserves, is poised to reshape the energy landscape, noted Oswaldo Felizzola, an energy expert at the Superior Administrative Studies Institute in Venezuela.