Chevron Commits $7B to Double Venezuela Oil Output

Chevron has announced plans to invest more than $7 billion in Venezuela's oil production over the next five years, aiming to nearly double output under its operations. The investment will be made through Chevron's Venezuelan joint ventures and is expected to increase production from around 300,000 barrels of oil per day (bopd) to approximately 600,000 bopd. This move follows a US-brokered deal that granted rights to develop 17 Venezuelan oilfields holding an estimated 64 billion barrels of reserves.

Chevron has operated in Venezuela since 1923 and holds three joint ventures in the country: Petroindependencia and Petropiar in the Orinoco Belt, and Petroboscan in western Zulia state. The company's expansion is separate from the US-brokered deal but adds weight to the broader push to expand Venezuelan output.

Venezuela's current oil production stands at around 1.25 million bopd, down from more than 3 million bopd two decades ago due to Western sanctions and underinvestment at state operator PDVSA. US energy secretary Chris Wright predicts that total Venezuelan output will reach 2 million bopd by the end of the decade.

Chevron CEO Mike Wirth stated that the company's history in Venezuela spans over a century, and its expanded position reflects confidence in the country's deep resource potential and ability to compete for investment. The new agreements provide enhanced fiscal, commercial, and legal protections for the investment, with total production costs expected to stay below $20 per barrel.