Chevron Expands Operations in Venezuela Amid Controversy Over US Deal
Oil giant Chevron has confirmed it will expand its operations in Venezuela, with plans to invest over $7 billion over the next five years. The company's CEO, Mike Wirth, stated that Chevron's expanded position reflects their confidence in Venezuela's deep resource potential and its ability to compete for investment within their portfolio.
The expansion comes just days after President Donald Trump announced a deal to develop Venezuela's oil reserves and give the Pentagon a stake in the profits. Chevron has been assigned additional acreage in the Orinoco Belt, where it already has operations, with the goal of more than doubling production from its 2026 level to approximately 600,000 barrels a day.
Venezuela holds the world's largest proven reserves, totaling over 303 billion barrels of crude oil, according to OPEC's 2025 Annual Statistical Bulletin. However, due to severely degraded energy infrastructure and international sanctions, daily production is just over 1 million barrels compared to Saudi Arabia's 10-11 million barrels per day.
The agreement has been met with skepticism from analysts who say it will take years to revive Venezuela's oil industry, which has been neglected for decades. There are also questions about whether the deal is legitimate, given that it was agreed upon with a dictatorship and under pressure from the United States.