US Energy Giant Chevron Commits Billions to Double Venezuela Oil Production

US oil giant Chevron has announced plans to invest more than $7bn through its Venezuela joint ventures to double oil production to approximately 600,000 barrels per day over the next five years. As the only US oil company with a major presence in the country, Chevron revealed on Wednesday that it has secured additional acreage in the Orinoco Belt, expanding its Petroindependencia joint venture into two adjacent areas within the Carabobo region.

“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,” said Chevron CEO Mike Wirth in a statement.

This major announcement follows closely behind US President Donald Trump unveiling a landmark deal involving a fifth of Venezuela’s oil reserves, which includes the US government taking an equity stake in a private oil firm operating locally. While Chevron’s expansion operates separately from that initiative, it further supports Donald Trump’s broader strategy to boost output in Venezuela.

Although Venezuela holds the world’s largest oil reserves, current production sits at about 1.25 million bpd—a significant drop from the more than 3 million bpd produced two decades ago due to years of underinvestment and mismanagement by state-run oil firm PDVSA, compounded by US sanctions. US Energy Secretary Chris Wright stated on Wednesday that the nation's total oil output is projected to reach 2 million bpd by the end of the decade.

Chevron noted that the new agreements secure enhanced fiscal, commercial, and legal terms designed to safeguard long-term investments, with total production costs anticipated to stay below $20 per barrel. During a CNBC interview, Mike Wirth explained that the joint venture's infrastructure remains in strong condition, allowing new developments to leverage existing facilities and pipelines.

“Our ability to grow at low cost is quite different than if we were going into a greenfield area that didn’t have roads, that didn’t have water, that didn’t have power,” Mike Wirth stated. Sources close to the preparations told the Reuters news agency that other entities including ENI, KEO Capital, and Primavera—cofounded by billionaire Fred Ehrsam—are also poised to sign energy agreements in Venezuela.

US Energy Secretary Chris Wright, who arrived in Caracas late on Tuesday, and Venezuela’s oil minister, Paula Henao, are anticipated to oversee the formal contract signings. Following the US abduction of former Venezuela President Nicolas Maduro from office in January, Donald Trump championed a $100bn reconstruction plan for the country's energy sector. While Chevron has maintained continuous operations in Venezuela since 1923—currently managing Petroindependencia, Petropiar, and Petroboscan—other major US producers such as ExxonMobil and ConocoPhillips withdrew in 2007 following nationalisation under former President Hugo Chavez.