Chevron to Double Venezuela Oil Output with $7 Billion Investment
Quick Look
- Chevron announced a $7 billion investment to more than double its oil production in Venezuela to 600,000 barrels per day by 2031, expanding its role in the Orinoco Belt through joint ventures with PDVSA.
- The move follows U.S. efforts to increase Venezuelan oil production via private investment, including partnerships with North American Blue Energy Partners and the U.S.
- Defense Department, amid political changes under an interim government.
AI-generated summary
Why It Matters
Chevron is the only major U.S. oil company operating in Venezuela through joint ventures with PDVSA. The country's oil sector has suffered from mismanagement and infrastructure decay under previous socialist leadership.
Chevron moved Wednesday to more than double its oil production in Venezuela over the next five years through a $7 billion investment that expands its position in the South American nation.
The oil major has been assigned two additional oilfields in the Orinoco Belt, the region that contains most of Venezuela's vast reserves of extra-heavy crude oil. Chevron plans to increase production in the country to 600,000 barrels per day by 2031 compared with about 280,000 bpd currently.
Chevron, through joint ventures with state-owned oil company Petróleos de Venezuela SA, or PDVSA, is the only U.S. oil major active in Venezuela. CEO Mike Wirth told CNBC that Venezuela has become more attractive for investment since the interim government passed a new hydrocarbon law that changed taxes, royalties and other conditions.
The changes have "taken this from not being very competitive within our set of alternatives to something that's very competitive versus our options around the world, which is why we're willing to commit significant capital and grow the way we are," Wirth told CNBC's Brian Sullivan in Caracas.
Chevron's announcement comes as the U.S. government pushes to increase oil production in Venezuela through private investment. The country's oil infrastructure is in a state of disrepair after years of mismanagement by its socialist government.
President Donald Trump announced Friday that the U.S. secured majority control over 65 billion barrels of Venezuela's crude oil reserves, about 20% of the 303 billion barrels the country is thought to possess. U.S. Energy Secretary Chris Wright is visiting Venezuela on Wednesday.
Washington has partnered with the private oil company North American Blue Energy Partners to develop those reserves. Venezuela's interim government has given NABEP concessions to 17 oilfields for 100 years. NABEP, in turn, has granted the U.S. Defense Department a 35% equity stake.
The U.S. captured former President Nicolás Maduro in a military raid in January and seized control of Venezuela's oil exports. Washington has partnered with interim President Delcy Rodríguez, the former vice president under Maduro.
Chevron shares were little changed Wednesday after climbing 13% in the past three months and 39% in 2026.
What to Watch
AI outlook — possibilities, not facts
Chevron will reach 600,000 barrels per day of oil production in Venezuela by 2031.
Likely · Within years
Open Questions
- How will the U.S. Defense Department's equity stake in NABEP affect operations?
- What specific terms govern the 100-year concessions granted to NABEP?
- How will Venezuela's interim government ensure compliance with investment agreements?
