Key Moments
- Chevron plans to invest more than $7 billion in Venezuela over the next five years to boost production to about 600,000 barrels per day.
- The company signed multiple agreements redefining terms for its Venezuelan joint ventures, including additional acreage in the Orinoco Belt.
- Chevron’s three joint ventures in Venezuela have increased output by 15% this year, with total costs expected to remain below $20 a barrel.
Strategic Expansion in Venezuelan Oil Sector
Investing.com — Chevron said Wednesday it has finalized revised terms with Venezuela covering its joint ventures in the country and plans to deploy more than $7 billion over the next five years. The investment is intended to raise production to approximately 600,000 barrels per day.
The announcement follows months of negotiations that were conducted separately from Washington’s recent declaration of a deal granting the U.S. majority control over roughly 65 billion barrels of Venezuelan oil reserves. Chevron said it signed multiple agreements that define new terms for its joint ventures to facilitate future capital deployment, project execution and production increases, including access to additional acreage in the Orinoco Belt.
Context of U.S.-Venezuela Energy Relations
The new agreements come in the wake of comments from President Trump last week, who said that the U.S. had reached a deal with Venezuela to secure control of a substantial portion of the country’s oil reserves. Venezuela’s oil industry deteriorated over years of mismanagement under Hugo Chavez and Nicolas Maduro. Since Maduro’s ouster in January, Trump has encouraged U.S. oil companies to expand their commitments in the country.
Chevron has continued to operate in Venezuela for more than 100 years, maintaining a presence even as other major U.S. oil firms exited. ExxonMobil and ConocoPhillips have not returned since 2007, when their Venezuelan assets were nationalized under Chavez.
Joint Venture Investments and Cost Structure
The newly announced capital will support production growth at Chevron’s three Venezuelan joint ventures, which Chevron said have already lifted output by 15% this year. The company expects total costs associated with these operations to remain below $20 a barrel.
| Key Investment Metrics | Detail |
|---|---|
| Total planned investment | More than $7 billion |
| Investment horizon | Next five years |
| Target production level | About 600,000 barrels per day |
| Output performance this year | 15% increase at three joint ventures |
| Expected total costs | Below $20 a barrel |
Chevron’s Longstanding Presence in Venezuela
“Chevron’s history in Venezuela spans more than a century, and our expanded position reflects our confidence in the country’s deep resource potential and its ability to compete for investment within our portfolio for decades,” Chevron CEO Mike Wirth said.
The company has been active in Venezuela since 1923 through three joint ventures: Petroindependencia and Petropiar, both located in the Orinoco Belt, and Petroboscan, situated in the western state of Zulia.
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