Chevron Commits Over USD 7 Billion to Venezuela After Washington Clears the Way

Chevron announced agreements with Venezuela on Wednesday providing for more than USD 7 billion of investment over the next five years, and said the deals should more than double output from its joint ventures there to around 600,000 barrels per day compared with 2026.

Chief Executive Mike Wirth thanked the United States government and Energy Secretary Chris Wright for helping create the conditions for new investment. In the company statement, Wirth credited the secretary with helping to facilitate the conditions for greater investment and more robust growth in the Venezuelan operations.

The economics are the point. Chevron says its total costs in the country sit below USD 20 per barrel. "With better terms and additional areas, we are strengthening a portfolio that we believe can deliver attractive low-cost oil growth," Wirth said. He also said the portfolio reinforces oil supply and creates differentiated long-term value.

Under the agreements, Petroindependencia, the joint venture in which a Chevron subsidiary holds a 49% stake, received rights to develop the Carabobo-1 and Carabobo-2-South-A areas, adjacent to existing operations in the Orinoco. The venture obtained a licence to work two additional oil fields, Carabobo 1 and Carabobo 2 Sur-A. Chevron's statement said the two reserves further strengthen its growing portfolio in Venezuela.

This is the second expansion of that vehicle this year. In April, Chevron had already raised its holding in Petroindependencia to 49% and secured rights over the Ayacucho 8 area. The company also received rights to new acreage in the Orinoco Belt adjacent to its existing operations.

The agreements set updated fiscal, commercial and legal terms for Chevron's Venezuelan operations and support new projects, according to the company. The company said the deals provide for new concessions in the Orinoco Belt alongside updated legal, fiscal and commercial terms.

Output is already moving. Chevron's three joint ventures in Venezuela have lifted production by 15% since the start of the year. The company holds three joint ventures in the country, including Petroindependencia.

The announcement confirms an expansion previewed on Tuesday by a US official, and follows the presentation by President Donald Trump's administration of a separate agreement to widen development of Venezuelan oil reserves. Wright concluded that accord in Caracas with the government of interim President Delcy Rodriguez, ceding to Washington the exploitation of 65 billion barrels of oil, equivalent to 20% of Venezuelan reserves.

AFP reported that the text refers to Nicolas Maduro being captured in Caracas during a US military operation on January 3.

Chevron has operated in Venezuela since 1923 and is the only large American oil company with a significant presence in the country. The American company said the agreements will allow it to double its Venezuelan oil production over the next five years, with investment of more than USD 7 billion and output approaching 600,000 barrels per day measured against 2026.

Tempo e Dinheiro, citing Folha de S.Paulo, reported that Chevron signed an agreement to invest USD 7 billion in Venezuela with the aim of doubling its oil production by 2031.