Chevron has announced plans to invest over $7 billion US in its Venezuela joint ventures to boost oil production to approximately 600,000 barrels per day over the next five years in the South American nation. The expansion will involve Chevron’s Petroindependencia joint venture encompassing two additional areas in the Carabobo region within Venezuela’s Orinoco Belt.
Chevron’s CEO Mike Wirth expressed confidence in Venezuela’s abundant resources and its competitiveness for long-term investments. This move by Chevron is separate from the recent deal involving a significant portion of Venezuela’s oil reserves, where the U.S. government secured an equity stake in a private oil company operating in the region.
Venezuela, home to the world’s largest oil reserves, has seen its current oil output decline to around 1.25 million barrels per day from over three million barrels per day two decades ago due to mismanagement and underinvestment by the state-run oil firm PDVSA. The country aims to increase its total oil output 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 include favorable fiscal, commercial, and legal terms to safeguard long-term investments, with expected production costs below $20 US per barrel. The joint venture’s existing infrastructure will support development in the new areas, leveraging the current facilities and pipeline networks, according to Wirth.
In addition to Chevron, other companies like ENI, KEO Capital, Primavera, and others are set to sign energy agreements in Venezuela, aligning with broader oil reforms. Following the U.S. backing of Juan Guaidó as interim president earlier this year, the Trump administration has been advocating for increased energy investments in Venezuela to revitalize the sector.
While Chevron has maintained operations in Venezuela for over a century, some major oil producers like ExxonMobil and ConocoPhillips exited the country in 2007 after their assets were nationalized under the previous government. Chevron’s strong presence in Venezuela positions it well amid evolving energy dynamics in the region.