Chevron Corporation announced on September 2 that it will invest more than $7 billion in Venezuela over the next five years to double its oil production there to about 600,000 barrels per day. The agreement adds two adjacent areas in the Carabobo region of the Orinoco Belt to Chevron's Petroindependencia joint venture with state-owned PDVSA. This expansion builds on Chevron's longstanding presence in Venezuela, where it operates under a special US license despite sanctions. Venezuela holds the world's largest proven crude reserves, about 17% of the global total, but currently produces only around 1.25 million barrels per day, down from over 3 million two decades ago. The Trump administration aims to revive output to 2 million barrels per day by the end of the decade. Chevron expects total production costs below $20 per barrel, and the new agreements include enhanced fiscal, commercial, and legal terms, though political and execution risks remain.
Chevron CorpChevron invests $7B to double Venezuela output, expanding its JV and securing favorable terms.
PDVSA gains Chevron's investment and expansion in its joint venture, boosting production prospects.
