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 over the next five years. The expansion will take place in the Carabobo region within Venezuela’s Orinoco Belt. Chevron’s CEO, Mike Wirth, expressed confidence in Venezuela’s resource potential and its competitiveness for long-term investment.
This development comes shortly after U.S. President Donald Trump revealed a significant agreement involving a portion of Venezuela’s oil reserves, with the U.S. government acquiring an equity stake in a private oil company operating in the country. Chevron’s expansion is a separate initiative but aligns with the broader push to boost oil output in Venezuela.
Venezuela, home to the world’s largest oil reserves, currently produces around 1.25 million barrels per day, a significant decline from previous years due to mismanagement and underinvestment by the state-run oil company, 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 of under $20 per barrel. The company will leverage existing infrastructure and facilities for the expansion in the Carabobo region. Wirth recently met with interim Venezuelan President Delcy Rodriguez, marking his first visit to the country.
In addition to Chevron, other energy companies, including ENI, KEO Capital, and Primavera, are set to finalize energy agreements in Venezuela. These agreements are part of the migration of numerous energy contracts to new terms following a comprehensive oil reform approved earlier this year.
Following the political changes in Venezuela earlier this year, the U.S. has been actively promoting energy investment in the country. While Chevron has maintained its presence in Venezuela for over a century, other major oil companies like ExxonMobil and ConocoPhillips exited in 2007 when their assets were nationalized under the previous administration.
Chevron’s longstanding operations in Venezuela include joint ventures in the Orinoco Belt and the Zulia state. The company’s expansion, along with other energy developments in the region, signals a shift in the oil industry landscape, with potential for significant growth and investment opportunities.