Chevron Doubles Down on Venezuela with $7 Billion Investment
Chevron, one of the largest US oil companies, has announced plans to expand its operations in Venezuela. The company will invest more than $7 billion over the next five years and aims to double its production from approximately 2026 levels to around 600,000 barrels per day.
The move comes after President Donald Trump's announcement of a deal to develop Venezuela's oil reserves and give the Pentagon a stake in the profits. Chevron has been operating in Venezuela since 1923 and currently holds joint ventures with Petroindependencia and Petropiar S.A., which operate extra-heavy oil projects in the Orinoco Oil Belt.
However, analysts have expressed skepticism about the agreement's success due to Venezuela's severely degraded energy infrastructure and the country's operating under international sanctions. The White House has confirmed its partnership with North American Blue Energy Partners as part of Trump's push to tap into Venezuela's oil industry.
Chevron CEO Mike Wirth said in a statement that the company's expanded position reflects its confidence in Venezuela's deep resource potential and ability to compete for investment within its portfolio. The deal has been met with questions about its legitimacy, with some arguing that it was agreed upon under pressure from the US and lacks approval from the National Assembly.