Chevron will invest more than $7bn through its Venezuela joint ventures to double oil production to about 600,000 barrels per day over the next five years, the company said on Wednesday.
The expansion will add acreage in the Orinoco Belt, including two adjacent areas in the Carabobo region for the Petroindependencia joint venture.
New terms and existing infrastructure
Chevron said the new agreements include enhanced fiscal, commercial and legal terms intended to protect its long-term investments. Total production costs are expected to remain below $20 per barrel.
The company said infrastructure supporting its existing operations is in good condition. Development in the newly assigned areas will use existing facilities and pipeline infrastructure rather than starting in an undeveloped area.
Chevron’s role in Venezuela’s oil sector
Chevron has operated in Venezuela since 1923 and has three joint ventures there: Petroindependencia and Petropiar in the Orinoco Belt, and Petroboscan in western Zulia state. The additional Carabobo sites will expand existing extra-heavy oil operations.
Venezuela’s current oil output is about 1.25 million barrels per day, compared with more than 3 million barrels per day two decades ago. The source attributes the decline to mismanagement and underinvestment by state-run PDVSA, along with US sanctions. For additional context, see “Venezuela sends more than 500,000 barrels a day to US refineries”.
Broader energy agreements
Chevron’s expansion is separate from a US government-backed deal involving a private oil company and a fifth of Venezuela’s oil reserves. The announcement follows US efforts under President Donald Trump to encourage investment in Venezuela’s energy sector.
Energy companies including ENI, KEO Capital and Primavera were also expected to sign agreements in Venezuela. Officials said US Energy Secretary Chris Wright and Venezuela’s oil minister, Paula Henao, were expected to oversee the contract signings.
What happens next
Chevron’s expanded Petroindependencia joint venture will incorporate the two additional Carabobo areas, while other energy agreements were expected to be signed as soon as Wednesday.
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