Chevron has announced plans to invest over $7 billion in its joint ventures in Venezuela to increase oil production to around 600,000 barrels per day within the next five years. The company’s Petroindependencia joint venture will be expanded to include two neighboring 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 comes shortly after the U.S. government unveiled a significant deal involving a portion of Venezuela’s oil reserves, in which Chevron’s expansion plays a separate but reinforcing role in the broader strategy to boost oil production in the country.
Venezuela holds the world’s largest oil reserves, yet its current daily output stands at just 1.25 million barrels, a decline from over three million barrels per day achieved in the past. The country aims to reach two million barrels per day by the end of the decade, according to U.S. Energy Secretary Chris Wright.
Chevron’s new agreements offer favorable terms to safeguard investments, with expected production costs of less than $20 per barrel. The company highlighted the existing infrastructure’s good condition, stating that development in the new areas will leverage the current facilities and pipeline network.
In addition to Chevron, other companies like ENI, KEO Capital, and Primavera are also set to sign energy agreements in Venezuela. These agreements are part of the renegotiation process involving numerous energy contracts under a comprehensive oil reform approved earlier this year.
Following the U.S.-backed transition in Venezuela earlier this year, the Trump administration has been actively promoting energy investments in the country. Chevron’s long-standing presence contrasts with other oil majors like ExxonMobil and ConocoPhillips, which exited Venezuela in 2007 when their assets were nationalized.
Chevron’s commitment to expanding its operations in Venezuela aligns with the broader energy investment push orchestrated by the U.S. government. Despite the evolving landscape in Venezuela’s energy sector, Chevron remains optimistic about its growth prospects in the country.