Chevron has announced plans to invest over $7 billion in its joint ventures in Venezuela to boost oil production to around 600,000 barrels per day within the next five years. The U.S. oil giant revealed that its Petroindependencia joint venture will be expanding to include two additional areas in the Carabobo region situated in Venezuela’s extensive Orinoco Belt.
Chevron’s CEO, Mike Wirth, expressed confidence in Venezuela’s substantial resource potential and its attractiveness for long-term investments. This move comes shortly after U.S. President Donald Trump disclosed a significant deal 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 region. Although separate from this arrangement, Chevron’s expansion aligns with Trump’s initiatives to boost oil production in Venezuela.
Venezuela holds the world’s largest oil reserves, yet its current output stands at approximately 1.25 million barrels per day, a steep decline from over three million barrels per day achieved two decades ago due to years of mismanagement and underinvestment by the state-run oil company, PDVSA. The country aims to increase its total 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 offer improved fiscal, commercial, and legal terms to safeguard long-term investments, with expected production costs of less than $20 per barrel. The company highlighted the robust infrastructure of its joint venture and plans to leverage existing facilities and pipeline networks for development in the new areas.
In addition to Chevron’s efforts, other companies such as ENI, KEO Capital, and Primavera are set to finalize energy agreements in Venezuela, marking a significant shift in the country’s energy landscape. The U.S. administration’s push for energy investments in Venezuela, following the political changes earlier this year, has attracted renewed interest from international energy players.
Chevron, with a longstanding presence in Venezuela dating back to 1923, operates three joint ventures in the country. While expanding its operations, the U.S. stake in North American Blue Energy Partners’ ambitious plan to develop multiple oilfields with substantial reserves is poised to reshape the energy sector in Venezuela, signaling a shift in the industry dynamics.
