Chevron announced on September 2 it will invest over US$7 billion in Venezuela over five years to boost oil production to about 600,000 barrels per day, more than doubling its current output of around 280,000 to 290,000 barrels per day [1, 2, 3]. The company secured updated terms for its three joint ventures in the country — Petroindependencia (49% stake), Petropiar, and Petroboscan — as well as rights to develop two additional areas in the Orinoco Belt, expanding its operations and acreage [1, 4, 3].
Mike Wirth, Chevron’s CEO, said, “Chevron’s history in Venezuela spans more than a century, and our expanded position reflects our confidence in the country’s deep resource potential and its ability to compete for investment within our portfolio for decades.” He added that the improved terms and additional acreage strengthen Chevron’s portfolio to deliver "attractive low-cost oil growth" and long-term value [1, 4, 3].
Chevron expects production costs in Venezuela to remain below US$20 per barrel, reflecting the company's view that its investment will be economically viable even amid global price fluctuations [1, 5, 3]. The company has increased its Venezuelan production by 15% so far in 2026, signaling early progress toward its expansion goals [1, 3].
Chevron has operated continuously in Venezuela since 1923, maintaining a presence through nationalizations and the exit of other major oil firms such as ExxonMobil and ConocoPhillips in the 2000s [1, 4, 5, 3]. Venezuela has the world’s largest proven oil reserves—approximately 303 billion barrels—which underpin Chevron’s long-term strategy in the region [4].
The expansion aligns with a broader US government-backed effort that includes North American Blue Energy Partners targeting up to $100 billion in reconstruction and investment in Venezuelan oil infrastructure. These efforts involve majority control over roughly 65 billion barrels of Venezuelan reserves, aiming to boost production and stabilize the energy sector [1, 3, 6].
However, opposition figures and analysts voice concerns regarding Venezuela’s governance, transparency, and infrastructure challenges. Maria Corina Machado, a Venezuelan opposition leader, said she supports US involvement but criticized the current government’s lack of transparency and civil liberties [6]. Economist Luis Vicente León noted that economic benefits for ordinary citizens will depend on fair and transparent government management [6].
Infrastructure repairs will be crucial for achieving production growth, with estimates suggesting full development of new fields and supporting facilities may take 5 to 10 years [6]. Venezuela’s acting president Delsi Rodriguez has set an ambitious national oil production target of 1.5 million barrels per day to further boost output [6].
Chevron’s investment agreement and expanded development rights mark a significant step expected to drive production gains in the near term, with ongoing efforts to scale operations and improve Venezuela’s oil sector infrastructure scheduled over the coming years.
