Chevron to Expand Operations in Venezuela, Doubling Oil Production

Chevron, the only US oil firm with a significant presence in Venezuela, announced plans to invest over $7 billion through its joint ventures in the country to double oil production to approximately 600,000 barrels per day over the next five years. The company stated it has been assigned additional acreage in the Orinoco Belt, where its Petroindependencia joint venture will expand to include two adjacent areas in the Carabobo region. Chevron CEO Mike Wirth noted that the company's history in Venezuela spans more than a century and emphasized confidence in the country's resource potential. This announcement follows a recent deal involving a portion of Venezuela's oil reserves announced by US President Donald Trump, although Chevron's expansion is separate from that initiative. Venezuela currently has the world's largest oil reserves but its output has declined to about 1.25 million barrels per day from over 3 million barrels per day two decades ago, largely due to mismanagement and US sanctions. US Energy Secretary Chris Wright indicated that Venezuela's total oil output could reach 2 million barrels per day by the end of the decade. Chevron's new agreements are expected to provide improved fiscal, commercial, and legal terms to safeguard long-term investments, with production costs anticipated to be below $20 per barrel. Wirth mentioned that the existing infrastructure in the new areas will facilitate development. Other companies, including ENI and KEO Capital, are also expected to sign energy agreements in Venezuela soon, as part of a broader effort to renegotiate energy contracts under a new oil reform. Wright and Venezuela's oil minister, Paula Henao, are expected to oversee the signing of these contracts. Chevron has been operating in Venezuela since 1923 and currently has three joint ventures in the country.