US oil giant Chevron to expand Venezuela operations | Oil and Gas News
Chevron to Double Oil Production in Venezuela with $7 Billion Investment
Published September 2, 2026
Chevron, the only U.S. oil company with a significant presence in Venezuela, has announced plans to invest more than $7 billion in joint ventures that will double its oil production to approximately 600,000 barrels per day over the next five years.
The announcement was made on Wednesday, following the assignment of additional acreage in the Orinoco Belt, where Chevron has already established operations. The expansion will involve the company’s Petroindependencia joint venture, which will include two adjacent areas in 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 attract investment for decades to come,” said Chevron CEO Mike Wirth in a statement.
This development comes shortly after U.S. President Donald Trump unveiled a historic deal concerning one-fifth of Venezuela’s oil reserves, which includes a U.S. government equity stake in a private oil firm operating in the region. While Chevron’s expansion is independent of that initiative, it aligns with Trump’s efforts to increase oil output in Venezuela.
Despite possessing the world’s largest oil reserves, Venezuela’s current production stands at approximately 1.25 million barrels per day, a significant decline from over 3 million barrels per day achieved two decades ago, largely due to years of mismanagement at the state-run oil company PDVSA and U.S. sanctions.
U.S. Energy Secretary Chris Wright stated that Venezuela’s oil production is anticipated to reach 2 million barrels per day by the end of the decade.
Chevron emphasized that the new agreements offer improved fiscal, commercial, and legal conditions aimed at safeguarding long-term investments. The company expects total production costs to remain below $20 per barrel.
Wirth noted in a CNBC interview that the joint venture’s existing infrastructure is well-maintained, allowing for development in new areas that can leverage current 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, water, or power,” he said.
In addition to Chevron, other companies such as ENI, investor KEO Capital, and energy firm Primavera—cofounded by billionaire Fred Ehrsam to invest in Venezuela—are poised to sign energy agreements in the country soon, according to sources close to the situation. Most agreements involve project expansions that are part of the renegotiation of numerous energy contracts under a comprehensive oil reform enacted in January.
Wright and Venezuela’s oil minister, Paula Henao, are expected to oversee the signing of these contracts.
Following the U.S. ousting of former Venezuelan President Nicolas Maduro in January, Trump has initiated a $100 billion reconstruction plan for the Venezuelan energy sector, encouraging U.S. oil companies to invest in the country.
While Chevron has maintained its operations in Venezuela continuously for over 100 years, other U.S. oil producers, such as ExxonMobil and ConocoPhillips, withdrew from the market in 2007 following asset nationalizations under former President Hugo Chavez. Chevron operates three joint ventures in Venezuela: Petroindependencia and Petropiar in the Orinoco Belt, and Petroboscan in western Zulia state.
The newly acquired sites in Carabobo aim to enhance existing operations focused on increasing extra-heavy oil production, Chevron stated.
