The Daily Journal.— Chevron plans to invest more than $7 billion in Venezuela over the next five years and more than double its production in the country to approximately 600,000 barrels per day, following new agreements that improve the fiscal, commercial and legal terms governing its joint ventures.
The expansion represents one of the largest commitments by a U.S. oil company to Venezuela in years. It comes just days after President Donald Trump announced a broad energy agreement with Caracas aimed at accelerating the development of the country’s oil reserves.
Chevron said Wednesday that the new agreements will allow the company to expand its asset portfolio and support investments to increase production from its joint ventures in Venezuela.
The plans call for the company’s joint operations to increase production to approximately 600,000 barrels per day within five years, more than double the levels expected for 2026.
“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,” Chevron Chairman and CEO Mike Wirth said in a statement.
New Areas in the Orinoco Belt
As part of the agreements, Chevron secured new development areas in the Orinoco Oil Belt, Venezuela’s main extra-heavy crude-producing region.
The Petroindependencia joint venture, in which a Chevron affiliate holds a 49% stake, secured development rights for the adjacent Carabobo-1 and Carabobo-2-South-A areas.
The new blocks will expand Petroindependencia’s operating footprint as the joint venture moves forward with plans to increase extra-heavy crude production.
The allocation follows an agreement reached in April, when Chevron increased its stake in Petroindependencia to 49% and secured development rights for Ayacucho 8, an area adjacent to its Petropiar joint venture.
“With improved terms and additional areas, we are strengthening a portfolio that we believe can deliver attractive, low-cost oil production growth, support energy supplies and create differentiated long-term value,” Wirth said.
Production rises 15% so far this year
Chevron’s three joint ventures in Venezuela — Petroindependencia, Petropiar and Petroboscan — have increased their combined production by 15% so far this year, according to the company.
Petroindependencia and Petropiar operate in the Orinoco Oil Belt and focus primarily on developing extra-heavy crude resources, while Petroboscan operates in the western state of Zulia.
Chevron has maintained a presence in Venezuela since 1923 and has retained its assets through different political and regulatory cycles.
Wirth also highlighted the U.S. administration’s role in facilitating conditions that would allow the company to expand its investments.
The executive specifically thanked the U.S. Department of Energy and Energy Secretary Chris Wright for helping create the conditions necessary for “new investment and growth.”
With information from EFE
