Chevron Corp. has agreed on updated terms for its joint ventures in and plans to invest more than $7 billion over the next five years, targeting oil production of about 600,000 barrels per day (bpd), the US energy major said on Wednesday.
The Houston-based company also secured rights to develop two major oil fields in Venezuela’s prolific Orinoco Belt — Carabobo 1 and Carabobo-2-South-A. The fields are located near Chevron’s Petroindependencia joint venture, in which the company holds a 49% stake.
Chevron expands Venezuela operations
The agreement marks a significant expansion of as US companies seek greater access to the country’s vast oil reserves.
currently produces around 280,000 bpd through three joint ventures with Venezuela’s state oil company, accounting for roughly one-fifth of the country’s total output. The company has previously targeted a 50% increase in production by the end of 2028.
Chevron has operated in Venezuela for decades, including after the government expropriated assets belonging to ExxonMobil and ConocoPhillips in 2007.
US pushes for greater control of Venezuela oil
The expansion comes as the seeks to deepen .
Washington is separately negotiating with Venezuelan authorities over , with long-term leases reportedly under discussion.
The US has also eased sanctions to allow American companies and oil-field contractors to operate in Venezuela while .
Other foreign producers have also been moving into the country. Oil-field services giant SLB and independent producer Hunt Oil have signed contracts with the Venezuelan government this month.
Venezuela faces major production challenges
Despite having some of the world’s largest crude reserves, Venezuela faces major hurdles in rebuilding its oil industry.
Degraded infrastructure, unreliable electricity supplies and legacy environmental liabilities could limit how quickly production can rise. Industry experts estimate that restoring output to the roughly 3 million bpd Venezuela produced before its prolonged oil-sector collapse could take more than a decade.
Venezuelan oil production has nevertheless increased by nearly 300,000 bpd since former President Nicolás Maduro was ousted, according to Bloomberg data.
US seeks more oil amid market volatility
Greater access to at a time of heightened volatility in global oil markets amid the war in Iran and disruption risks around the Strait of Hormuz.
It could also help Washington replenish the Strategic Petroleum Reserve, which is currently at roughly 41% of capacity, according to the information provided.
(With Bloomberg inputs)