Chevron plans to invest over $7 billion in its joint ventures in Venezuela to boost oil production to approximately 600,000 barrels per day within the next five years. The U.S. oil giant announced the expansion of its Petroindependencia joint venture to include two additional areas in the Carabobo region of Venezuela’s Orinoco Belt.
Chevron’s CEO, Mike Wirth, expressed confidence in Venezuela’s significant resource potential and its attractiveness for long-term investment. This move follows an extraordinary agreement unveiled by U.S. President Donald Trump, involving a substantial portion of Venezuela’s oil reserves and the American government’s equity stake in a private oil company operating in the country. Chevron’s expansion efforts align with the broader strategy to increase oil production in Venezuela.
Venezuela, home to the world’s largest oil reserves, currently produces around 1.25 million barrels per day, a significant drop from its peak production of over three million barrels per day two decades ago. The country aims to ramp up its total oil output to 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 fiscal, commercial, and legal terms to safeguard its long-term investments, with projected production costs below $20 per barrel. The company highlighted the robust infrastructure of its joint venture and emphasized leveraging existing facilities and pipeline networks for development in the new areas.
In addition to Chevron, other companies such as ENI, KEO Capital, and Primavera, led by billionaire Fred Ehrsam, are expected to sign energy agreements in Venezuela. These agreements signify ongoing project expansions under the comprehensive oil reform approved in January. U.S. Energy Secretary Chris Wright and Venezuela’s oil minister, Paula Henao, are set to oversee the signing of these contracts.
The U.S. government has been actively promoting energy investments in Venezuela, especially after the political transition earlier this year. Chevron’s commitment to Venezuela dates back to 1923, with multiple joint ventures operating in strategic regions across the country. While Chevron expands its operations, the participation of North American Blue Energy Partners in developing significant oil reserves could reshape the landscape, creating a formidable player in the sector.