Chevron has announced plans to invest over $7 billion in its joint ventures in Venezuela to boost oil production to approximately 600,000 barrels per day over the next five years. The U.S. oil giant revealed that its Petroindependencia joint venture will be expanding to include two adjacent areas in Venezuela’s Carabobo region within the expansive Orinoco Belt.
Chevron’s CEO, Mike Wirth, expressed confidence in Venezuela’s abundant resources and competitive investment potential, emphasizing the company’s long-standing history in the country. This move follows recent developments where President Donald Trump revealed a significant deal involving a fifth of Venezuela’s oil reserves, leading to the American government acquiring an equity stake in a private oil company operating in Venezuela.
Venezuela, known to hold the world’s largest oil reserves, has seen its current oil output decline to about 1.25 million barrels per day due to years of mismanagement and underinvestment by the state-run firm PDVSA. However, projections suggest that the country’s oil production could reach two million barrels per day by the end of the decade.
Chevron highlighted that the new agreements offer favorable fiscal, commercial, and legal terms to safeguard long-term investments, with projected production costs below $20 per barrel. The company also mentioned that the joint venture’s infrastructure is well-maintained, with expansion plans leveraging existing facilities and pipeline networks.
In addition to Chevron, other companies like ENI, KEO Capital, and Primavera are set to sign energy agreements in Venezuela as part of a broader move to revamp existing contracts under a comprehensive oil reform. U.S. Energy Secretary Chris Wright and Venezuela’s oil minister are expected to oversee the contract signings.
Since the removal of former Venezuelan President Nicolás Maduro earlier this year, the U.S. has been advocating for energy investment in Venezuela, with Chevron being one of the few remaining American oil companies in the country. While Chevron continues to strengthen its presence in Venezuela, other major players like ExxonMobil and ConocoPhillips exited the country in 2007 when their assets were nationalized.
Chevron’s deep-rooted presence in Venezuela dates back to 1923, with operations spanning three joint ventures across different regions in the country. As the energy landscape evolves, experts anticipate significant transformations in the sector, with a massive U.S. oil company poised to emerge from strategic deals like the North American Blue Energy Partners plan to exploit substantial crude reserves in the region.