Chevron is set to invest over $7 billion in its joint ventures in Venezuela to double oil production to around 600,000 barrels per day within the next five years. The U.S. oil giant announced this plan on Wednesday, unveiling new agreements that will see its Petroindependencia joint venture expanding to encompass two additional areas in the Carabobo region of Venezuela’s Orinoco Belt.
Chevron’s CEO, Mike Wirth, expressed confidence in Venezuela’s abundant resources and its attractiveness for long-term investments. This move by Chevron comes shortly after President Donald Trump disclosed a significant deal involving a fifth of Venezuela’s oil reserves, in which the U.S. government secured an equity stake in a private oil company operating in the region. While Chevron’s expansion is independent of this arrangement, it aligns with Trump’s initiatives to boost oil output in Venezuela.
According to White House spokesperson Anna Kelly, oil from this venture could reach U.S. reserves by November. Venezuela, known for possessing the world’s largest oil reserves, has seen its current production drop to about 1.25 million barrels per day due to years of mismanagement and underinvestment by the state-owned oil company PDVSA. However, U.S. Energy Secretary Chris Wright anticipates Venezuela’s total oil output to hit two million barrels per day by the end of this decade.
Chevron highlighted that the new agreements provide favorable fiscal, commercial, and legal terms to safeguard long-term investments, with projected production costs expected to be below $20 per barrel. The company plans to leverage existing infrastructure and facilities for the development of the new areas. Wirth, along with other Chevron executives, recently met with interim Venezuelan President Delcy Rodriguez, marking Wirth’s first visit to the country.
Apart from Chevron, other energy players like ENI, KEO Capital, and Primavera are poised to sign energy agreements in Venezuela, signaling a positive trend in the energy sector. Following the removal of former Venezuelan President Nicolás Maduro from office earlier this year, the U.S. has been actively promoting energy investments in Venezuela. While Chevron has maintained its presence in Venezuela for over a century, fellow oil giants ExxonMobil and ConocoPhillips exited the country in 2007 when their assets were nationalized under the previous administration.
Chevron’s longstanding operations in Venezuela date back to 1923, with joint ventures in the Orinoco Belt and the western Zulia state. As the company strengthens its position in the country, the U.S. involvement in North American Blue Energy Partners’ ambitious plan to develop oilfields holding substantial reserves could reshape the industry landscape, according to energy experts in Venezuela.
