Chevron has announced plans to invest over $7 billion US in its joint ventures in Venezuela to double oil production to approximately 600,000 barrels per day within the next five years. The expansion will involve Chevron’s Petroindependencia joint venture incorporating two additional areas in the Carabobo region of Venezuela’s Orinoco Belt.
Chevron’s CEO, Mike Wirth, expressed confidence in Venezuela’s resource potential and its attractiveness for long-term investments. This move by Chevron comes shortly after U.S. President Donald Trump revealed a significant deal involving a portion of Venezuela’s oil reserves, further emphasizing the push to boost oil output in the country.
Venezuela holds the world’s largest oil reserves, but its current daily output stands at around 1.25 million barrels, significantly lower than the over three million barrels achieved two decades ago due to mismanagement and underinvestment by state-run oil firm PDVSA. The country aims to reach a total oil output of two million barrels per day by the end of the decade, as stated by U.S. Energy Secretary Chris Wright.
Chevron’s new agreements in Venezuela include favorable fiscal, commercial, and legal terms to safeguard long-term investments, with projected production costs below $20 US per barrel. The joint venture’s infrastructure is well-established, and the development in new areas will leverage existing facilities and pipeline networks, according to Wirth.
In addition to Chevron, other companies like ENI, KEO Capital, and Primavera are expected to sign energy agreements in Venezuela soon. These agreements are part of a broader migration of energy contracts to new terms following an extensive oil reform approved in January.
The U.S. has been actively promoting energy investments in Venezuela, with Trump advocating a $100-billion US reconstruction plan for the country’s energy sector. While Chevron has maintained its operations in Venezuela for over a century, other oil producers like ExxonMobil and ConocoPhillips exited the country in 2007 when their assets were nationalized.
Chevron’s long-standing presence in Venezuela and its ongoing expansion efforts highlight the company’s commitment to the region. The evolving energy landscape in Venezuela, including the increasing U.S. involvement, is reshaping the dynamics of the country’s oil industry according to experts.
