Chevron has announced plans to invest over $7 billion in its joint ventures in Venezuela to double oil production to approximately 600,000 barrels per day within the next five years. This expansion will take place in the Carabobo region of Venezuela’s Orinoco Belt under new agreements with the Petroindependencia joint venture.
Chevron’s CEO, Mike Wirth, emphasized the company’s longstanding history in Venezuela and its confidence in the country’s resource potential. This move comes shortly after U.S. President Donald Trump revealed a significant deal involving a portion of Venezuela’s oil reserves, reinforcing efforts to boost output in the country.
Venezuela, known for having the world’s largest oil reserves, currently produces around 1.25 million barrels per day, a sharp decline from previous years due to mismanagement and underinvestment by state-run oil firm PDVSA. However, U.S. Energy Secretary Chris Wright expects Venezuela’s total oil output to reach two million barrels per day by the end of the decade.
Chevron’s new agreements include favorable fiscal, commercial, and legal terms to safeguard long-term investments, with projected production costs of under $20 per barrel. The company plans to leverage existing infrastructure for development in the new areas, building upon current facilities and pipeline networks.
Apart from Chevron, other entities such as ENI, KEO Capital, and Primavera are also gearing up to sign energy agreements in Venezuela. These agreements are part of a broader initiative to revamp energy contracts under a recent oil reform, with Wright and Venezuela’s oil minister overseeing the signing process.
Following the removal of former Venezuelan President Nicolás Maduro earlier this year, Trump introduced a substantial reconstruction plan for Venezuela’s energy sector, encouraging U.S. oil companies to invest in the country. While Chevron has maintained operations in Venezuela for a century, other major oil producers like ExxonMobil and ConocoPhillips exited the country in 2007 when their assets were nationalized.
Chevron, with its extensive presence in Venezuela, continues to expand its operations, while the U.S. stake in North American Blue Energy Partners’ oilfields development project is poised to make a significant impact on the industry, signaling a shift in the dynamics of the sector.