Chevron announced plans to invest $7 billion in Venezuela’s oil sector, aiming to double its production in the Orinoco Belt region over the next five years. The Texas-based energy company, currently the largest private oil producer in Venezuela, seeks to increase its output to 600,000 barrels per day, which would account for more than half of the country’s present oil production.
The investment comes amid a shifting landscape in Venezuela’s oil industry. Earlier this year, Venezuela’s National Assembly approved a legal overhaul intended to give foreign investors greater control over their operations. This move aligns with efforts by the administration of former U.S. President Donald Trump to attract foreign investment and deepen American involvement in Venezuela’s energy sector.
Last month, Trump announced a separate arrangement with a Venezuelan businessman, Alejandro Betancourt López, involving a joint venture designed to secure majority U.S. control over a substantial portion of Venezuela’s oil reserves. This deal highlights the United States’ strategic interest in the country’s petroleum resources but may also introduce competition for Chevron, complicating its already significant presence.
Chevron’s decision to reinforce its position in Venezuela marks a notable departure from the stance taken by other major U.S. oil companies. While Exxon Mobil and ConocoPhillips exited Venezuela about 20 years ago over disputes related to nationalization and ownership terms, Chevron opted to remain, operating under agreements that gave the Venezuelan government a majority stake. Currently, Chevron produces approximately 280,000 barrels per day in partnership with the state-owned Petróleos de Venezuela, S.A. (PDVSA).
Mike Wirth, Chevron’s CEO, described the recent regulatory changes as transformative for the company’s regional strategy. Speaking to CNBC, he said the adjustments have shifted Venezuela from a relatively less attractive option to a highly competitive investment opportunity within Chevron’s portfolio.
The planned expansion underscores Chevron’s commitment to leveraging Venezuela’s vast oil reserves despite the country’s ongoing economic and political challenges, reflecting confidence that the evolving legal framework and U.S. diplomatic interests will create a more favorable environment for foreign energy investment.