Chevron Pumps Up Investment in Venezuela Amid Trump-Backed Deal
US oil giant Chevron has announced plans to expand its operations in Venezuela, investing over $7 billion over the next five years. The move comes as part of an agreement between the US and Venezuelan governments to develop the country's oil reserves. According to CEO Mike Wirth, Chevron's expanded position in Venezuela reflects the company's confidence in the country's deep resource potential.
The Orinoco Belt, where Chevron operates, holds over 303 billion barrels of proven crude oil reserves, making it the world's largest reserve holder. However, daily production is just over 1 million barrels due to the energy infrastructure's severe degradation and international sanctions. Chevron aims to more than double its production from 2026 levels to approximately 600,000 barrels a day.
The agreement has been met with skepticism from analysts who warn that reviving Venezuela's oil industry will take years and require tens of billions of dollars in restoration work. Energy Secretary Chris Wright defended the deal, stating it would increase confidence for private businesses to invest in Venezuela.