Chevron Doubles Down on Venezuela with $7 Billion Bet

Chevron has committed $7 billion to Venezuela as part of its plan to double oil production in the country by 2031. The move comes just days after the Trump administration announced a historic oil deal with Venezuela, which granted privately held North American Blue Energy Partners (NABEP) 100-year rights to develop 17 oil fields with an estimated 65 billion barrels of reserves.

Chevron plans to focus on the Orinoco Belt, where it will operate in two newly acquired areas: Carabobo 1 and Carabobo-2-South-A. The company expects to produce nearly 600,000 barrels per day at a cost of $20 per barrel, significantly lower than the current industry average.

The investment is expected to break down to around $1.4 billion annually over five years, which is roughly 10% of Chevron's annual capital expenditure budget. The move reinforces Chevron's dominance in South American oil and could unlock a powerful catalyst for long-term cash flow by securing low-cost production without overextending capital expenditure.