Key facts
- Chevron confirmed plans to expand its operations in Venezuela.
- The company will invest over $7 billion in five years.
- The investment aims to increase production to approximately 600,000 barrels per day.
- Chevron has been assigned additional acreage in the Orinoco Belt.
- Venezuela holds the world's largest proven oil reserves.
- Current Venezuelan oil output is around 1.1 to 1.2 million barrels per day.
Chevron has confirmed its intention to expand operations in Venezuela, a move that involves an investment of over $7 billion over the next five years with the goal of increasing production to approximately 600,000 barrels per day. This expansion, which includes additional acreage in the Orinoco Belt, signifies Chevron's confidence in Venezuela's resource potential and its ability to secure investment within its global portfolio.
CEO Mike Wirth stated that the expanded position reflects Chevron's belief in the country's deep resource potential and its capacity to compete for investment. He highlighted that improved terms and additional acreage would strengthen a portfolio capable of delivering attractive, low-cost oil growth, supporting energy supply, and creating long-term value.
Venezuela possesses the world's largest proven oil reserves, estimated at over 303 billion barrels. However, its current output is significantly lower, between 1.1 and 1.2 million barrels per day, attributed to political instability and international sanctions. The announcement follows a U.S. official's briefing on the expected deal and visits by Chevron officials and Energy Secretary Chris Wright to Venezuela.
President Donald Trump has been a proponent of U.S. businesses re-establishing a presence in Venezuela to reduce reliance on Middle Eastern oil. He suggested that other major oil companies, including Exxon, were also preparing to enter the Venezuelan market, although Exxon stated that its position regarding Venezuela had not changed. Treasury Secretary Scott Bessent emphasized Chevron's expertise in operating in Venezuela and suggested the deal would lower oil prices and increase production for the benefit of U.S. consumers and the Venezuelan economy.
Despite the optimistic outlook from the administration, analysts and energy experts have expressed skepticism. They point to the dilapidated state of Venezuela's oil infrastructure, which requires substantial investment and years of restoration work to revive. Questions have also been raised regarding the legal authority of Venezuela's acting President Delcy Rodríguez to grant 100-year rights over oil fields and the potential for future administrations to overturn the agreement. The national average price for a gallon of regular gasoline has recently risen to $4.12.