Chevron has announced plans to inject over $7 billion into its joint ventures in Venezuela, aiming to double oil production to around 600,000 barrels per day within the next five years. The U.S. oil giant disclosed that its Petroindependencia joint venture will be expanding to encompass two adjacent areas in Venezuela’s Carabobo region situated within the Orinoco Belt.
Chevron’s CEO, Mike Wirth, emphasized the company’s long-standing presence in Venezuela, spanning over a century and reflecting confidence in the nation’s abundant resources and investment potential. This development follows 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 entity operating in the country. Chevron’s expansion initiative, although distinct from this deal, aligns with Trump’s strategy to boost oil output in Venezuela.
Venezuela boasts the world’s largest oil reserves, yet its current production stands at approximately 1.25 million barrels per day, a decline from its peak of over three million barrels per day two decades ago due to mismanagement and underinvestment by the state-run oil company, PDVSA. The country aims to reach a total output of two million barrels per day by the end of the decade, as outlined by U.S. Energy Secretary Chris Wright.
Chevron’s new agreements offer improved fiscal, commercial, and legal terms to safeguard long-term investments, with projected production costs expected to be below $20 per barrel. The joint venture’s infrastructure is well-maintained, leveraging existing facilities and pipeline networks for development in the new areas, according to Wirth.
In addition to Chevron, other industry players such as ENI, KEO Capital, and Primavera, a firm co-founded by billionaire Fred Ehrsam, are poised to finalize energy agreements in Venezuela. These agreements, part of a broader oil reform enacted in January, entail project expansions negotiated during the transition of numerous energy contracts to new terms.
Following the removal of former Venezuelan President Nicolás Maduro earlier this year, Trump has advocated for a $100-billion reconstruction plan for Venezuela’s energy sector, urging U.S. oil companies to invest in the country. While Chevron has maintained operations in Venezuela for a century, ExxonMobil and ConocoPhillips exited in 2007 when their assets were nationalized under Hugo Chávez’s government.
Chevron’s presence in Venezuela dates back to 1923, with three joint ventures operating in the country. As the company expands its operations, the U.S. stake in North American Blue Energy Partners’ plan to develop 17 oilfields holding approximately 64 billion barrels of crude reserves is set to reshape the industry landscape, according to Oswaldo Felizzola from Venezuela’s Superior Administrative Studies Institute.