US oil giant Chevron to expand Venezuela operations

Chevron announced it will invest more than $7 billion to double its Venezuelan oil output to roughly 600,000 barrels per day within five years, after being granted additional acreage in the Orinoco Belt’s Carabobo region. The expansion will extend the company’s Petroindependencia joint venture into two adjacent areas, building on its century‑long presence in the country. CEO Mike Wirth said the move reflects confidence in Venezuela’s deep resource potential, while Energy Secretary Chris Wright highlighted that the new agreements include enhanced fiscal, commercial and legal protections, with production costs projected below $20 per barrel.

The development comes amid a broader push by the Trump administration to revive Venezuela’s oil sector, which holds the world’s largest reserves but has seen output fall from over 3 million barrels per day two decades ago to about 1.25 million today due to mismanagement, underinvestment by PDVSA and U.S. sanctions. Trump recently unveiled a deal giving the U.S. government an equity stake in a private Venezuelan oil firm, and a sweeping oil reform approved in January is prompting dozens of contracts to be renegotiated. In addition to Chevron, firms such as Italy’s ENI, investor KEO Capital and Primavera—co‑founded by billionaire Fred Ehrsam—are slated to sign energy agreements, with oil minister Paula Henao and Wright expected to oversee the signings in Caracas.

Chevron’s expansion leverages existing infrastructure, avoiding the high costs of greenfield projects, and underscores its unique position as the only U.S. oil major still operating in Venezuela after ExxonMobil and ConocoPhillips exited in 2007 following nationalizations. The company now runs three joint ventures—Petroindependencia and Petropiar in the Orinoco Belt and Petroboscan in Zulia state—while the new Carabobo sites will boost extra‑heavy oil production. If the projected increase materializes, Venezuela’s total output could rise to 2 million barrels per day by decade’s end, marking a significant step toward reviving its once‑dominant oil industry.

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