Chevron announced plans to more than double its oil production in Venezuela over the next five years, committing to an investment of over $7 billion. The expansion aims to increase output to approximately 600,000 barrels per day, representing over half of Venezuela’s current production. This move marks the first major investment in the country from a U.S. oil company since the overthrow of Nicolás Maduro earlier this year.

The announcement came amid efforts by the U.S. government, under President Donald Trump’s administration, to enhance American influence over Venezuela’s energy sector. U.S. Energy Secretary Chris Wright traveled to Caracas to meet with Venezuelan interim president Delcy Rodríguez and to oversee the signing of the deal with Chevron. Wright described the day as “transformative,” emphasizing that energy development is central to reshaping U.S.-Venezuela relations.

Chevron’s renewed investment includes securing rights to develop two additional oilfields in the Orinoco Belt, a region known for its heavy crude reserves. The company currently produces about 280,000 barrels per day in Venezuela, up from 50,000 barrels several years ago, and believes the country’s oil potential will be a competitive, long-term part of its portfolio. CEO Mike Wirth expressed confidence in Venezuela’s resource potential and highlighted the relatively low production costs, estimated at under $20 per barrel for the new projects.

This expansion coincides with recent legal and regulatory changes in Venezuela aimed at attracting more foreign investment. Earlier this year, Venezuela’s National Assembly passed measures granting foreign companies greater control over their operations, a reversal from the nationalization policies implemented two decades ago. Chevron negotiated new terms with PDVSA, the state oil company, including asset swaps in the Orinoco region, which will support increased production.

Italian oil major Eni also announced an agreement to take operatorship of the Junín-5 oilfield in the Orinoco Belt, which holds an estimated 35 billion barrels of oil in place but currently produces only about 12,000 barrels per day. Eni plans to invest $1.5 billion annually to ramp up production to 400,000 barrels per day. CEO Claudio Descalzi noted the deal as recognition of the company’s ability to deliver complex projects efficiently.

Both Chevron and Eni have continued operations in Venezuela under exemptions from U.S. sanctions, viewed by Washington as a strategic counterbalance to Russian and Chinese influence in the country’s energy sector. However, other major U.S. companies, including ExxonMobil and ConocoPhillips, have so far refrained from re-entering Venezuela following asset seizures by the government in previous years.

Separately, the Trump administration has supported another venture involving Venezuelan businessman Alejandro Betancourt López, whose company controls a significant portion of Venezuelan oil reserves. In a deal granting the U.S. government an option to acquire a 35% stake in Betancourt’s company, the government would gain preferential access to oil production and influence over corporate governance. This move, while distinct from Chevron’s deal, may present future competition for American firms in Venezuela’s oil sector.

Chevron’s chief financial officer, Eimear Bonner, noted that further investments would require “fiscal protections” such as international arbitration rights to ensure stability and protect the company’s interests. Meanwhile, other global companies like BGP and Shell have also announced projects focused on offshore gas exploration in Venezuela.

The evolving U.S. strategy highlights a broader effort to increase oil supplies under U.S. influence from Venezuela, as Washington seeks to reshape the geopolitical landscape in Latin America following the political upheaval earlier this year.