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Chevron Expands Venezuela Operations Amid U.S.-Venezuela Shift
Confirmed
In Short: Chevron is investing over $7 billion in Venezuela to boost oil production, despite political and economic uncertainties, as the U.S. shifts its stance on the country.
Chevron has struck a new agreement to expand its operations in Venezuela, aiming to more than double production from its joint ventures in the country over the next five years, according to a statement from the company. The investment, worth over $7 billion, is expected to support energy supply and create long-term value, according to Chevron CEO Mike Wirth.
The move comes amid a significant shift in the U.S.-Venezuela relationship, following the January U.S. military operation that captured former Venezuelan President Nicolás Maduro in Caracas. The Trump administration also announced an oil agreement last month involving approximately 65 billion barrels of proven Venezuelan reserves, granting North American Blue Energy Partners 100-year concessions covering 17 oil fields.
Despite political and economic uncertainties, Chevron's production across its three Venezuelan joint ventures has already increased by 15% this year. The company's expanded position reflects its confidence in the country's deep resource potential, according to Wirth. Other U.S. oil companies, however, have previously hesitated to re-enter Venezuela, with ExxonMobil CEO Darren Woods calling the country 'uninvestable' at a White House meeting in January.
The deal announced today expands Chevron's footprint at a time when Venezuela is run by an interim, unelected president, Delcy Rodríguez, who came into office after the U.S. captured former President Nicolás Maduro in January. Analysts estimate it would take over a decade and $183 billion to restore Venezuela's oil production to its 1990s level of around 3 million barrels a day.
What's confirmed
What's still developing
- Rep. Pat Fallon, R-Texas, predicts that the U.S.-Iran conflict is nearing its end due to economic pressure on the regime on ‘The Bottom Line.’ Chevron is expanding its footprint in Venezuela under new agreements that…
- The oil giant said Wednesday that the agreements establish updated fiscal, commercial and legal terms for its Venezuelan joint ventures, creating conditions for additional investment, development and production growth.
- Production across Chevron’s three Venezuelan joint ventures has already increased 15% so far this year, the company said.
- "With improved terms and additional acreage, we are strengthening a portfolio that we believe can deliver attractive low-cost oil growth, support energy supply and create differentiated long-term value," Chevron…
- The investment push comes amid a major shift in the U.S.-Venezuela relationship following the January U.S. military operation that captured former Venezuelan President Nicolás Maduro in Caracas.
- Separately, the Trump administration announced an oil agreement last month involving approximately 65 billion barrels of proven Venezuelan reserves.
- Under the arrangement, Venezuelan interim authorities granted North American Blue Energy Partners 100-year concessions covering 17 oil fields, while the U.S. government secured majority ownership and governance…
- Chevron is expanding its existing operations in Venezuela, the Houston-based company said Wednesday.