Chevron has announced plans to invest over $7 billion in its joint ventures in Venezuela to increase oil production to approximately 600,000 barrels per day within the next five years. This initiative aims to double the output by expanding Chevron’s Petroindependencia joint venture to encompass two additional areas in the Carabobo region of Venezuela’s Orinoco Belt.
Chevron’s CEO, Mike Wirth, expressed confidence in Venezuela’s extensive oil resources, highlighting the country’s potential for long-term investment. This expansion reflects Chevron’s century-long presence in Venezuela and its commitment to capitalizing on the nation’s oil reserves.
The recent agreement by Chevron comes shortly after U.S. President Donald Trump revealed a significant deal 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 region. While separate from this agreement, Chevron’s expansion aligns with Trump’s efforts to boost oil production in Venezuela.
Venezuela possesses the world’s largest oil reserves; however, its current daily output stands at around 1.25 million barrels, a significant decline from over three million barrels achieved two decades ago due to mismanagement and underinvestment by the state-run oil firm PDVSA. The country aims to increase its oil production to two million barrels per day by the end of the decade, as stated by U.S. Energy Secretary Chris Wright.
Chevron’s new agreements ensure favorable fiscal, commercial, and legal terms to safeguard long-term investments, projecting production costs to be below $20 per barrel. The company plans to leverage existing infrastructure and facilities for development in the new areas, as mentioned by Wirth in a CNBC interview.
In addition to Chevron, other companies like ENI, KEO Capital, and Primavera are set to sign energy agreements in Venezuela. These agreements are part of a broader energy sector transformation under an oil reform initiative approved in January. U.S. Energy Secretary Wright and Venezuela’s oil minister, Paula Henao, are overseeing the contract signings.
Following the removal of former Venezuelan President Nicolás Maduro earlier this year, President Trump has advocated for a $100-billion reconstruction plan in Venezuela’s energy sector, encouraging U.S. oil companies to invest in the country. While Chevron continues its operations in Venezuela, other oil producers like ExxonMobil and ConocoPhillips exited the country in 2007 when their assets were nationalized under the previous administration.
Chevron’s longstanding presence in Venezuela dates back to 1923, with joint ventures operating in different regions of the country. As Chevron expands its operations, the U.S. stake in North American Blue Energy Partners could significantly impact Venezuela’s oil industry, creating a major player in the market, according to energy experts.
