Chevron Expands in Venezuela

Chevron has confirmed it will expand its operations in Venezuela, days after President Donald Trump announced a deal to develop the country's oil reserves. The company said it has been assigned additional acreage in the Orinoco Belt, where it already operates. Chevron plans to invest more than $7 billion over the next five years, aiming to more than double its production from its 2026 level to approximately 600,000 barrels a day.

CEO Mike Wirth said in a prepared statement: "Chevron's history in Venezuela spans more than a century, and our expanded position reflects our confidence in the country's deep resource potential and its ability to compete for investment within our portfolio for decades." He added, "With improved terms and additional acreage, we are strengthening a portfolio that we believe can deliver attractive low-cost oil growth, support energy supply and create differentiated long-term value."

Context and Background

Venezuela holds the world's largest proven oil reserves, totaling more than 303 billion barrels, according to OPEC's 2025 Annual Statistical Bulletin. Saudi Arabia is second with 267 billion barrels. However, Venezuela's daily production is just over 1 million barrels, compared with 10 million to 11 million barrels for Saudi Arabia, according to reports.

Chevron is the second-largest US oil company and the only one with a major presence in Venezuela. It has operated in the country since 1923. Its joint ventures Petroindependencia and Petropiar operate extra-heavy oil projects in the Orinoco Oil Belt, while Petroboscan is located in Zulia State.

Venezuela nationalized its oil industry in 1976, creating PDVSA. A second nationalization in 2007 under Hugo Chávez pushed foreign companies into joint ventures and seized assets of those that refused. Chevron agreed to a joint venture, while Exxon and ConocoPhillips refused and had assets taken.

The Deal and Government Role

The White House confirmed Monday that it is partnering with North American Blue Energy Partners as part of Trump's push to tap into Venezuela's oil industry. Energy Secretary Chris Wright said on CNBC: "What we're doing is increasing the confidence for private businesses to come do deals in Venezuela, directly with the government of Venezuela."

Trump said in January: "We have Exxon going in, we have Chevron going in. We have our big oil companies going in." However, Exxon Mobil CEO Darren Woods said in January that Venezuela was "uninvestable." An Exxon spokesman said this week that "nothing has changed."

A US official, who briefed reporters on the expected move, said Chevron officials and Energy Secretary Chris Wright were expected to visit Venezuela on Wednesday when the new investment would be formally unveiled. The official spoke on condition of anonymity under ground rules set by the White House. US Energy Secretary Chris Wright arrived in Maiquetia, Venezuela, on Tuesday.

Skepticism and Legal Questions

Analysts expressed skepticism about the wider agreement, saying it could take years to revive Venezuela's oil industry. Energy experts have questioned whether Venezuela's acting president Delcy Rodríguez has the legal authority to grant Chevron 100-year rights over 17 oil fields with reserves of 65 billion barrels. Venezuela's constitution requires approval by the National Assembly, which has not happened, wrote Ian Vásquez of the Cato Institute. Vásquez wrote: "The deal lacks legitimacy since it was agreed to with a dictatorship that has clung to power for decades through violence and by committing what was probably the largest electoral fraud in Latin American history in 2024." He also noted the agreement was reached under overwhelming pressure, military and otherwise, from the United States.

Energy experts also questioned whether future Venezuelan or American administrations might reverse the agreement. Experts warned Venezuela's oil infrastructure will require years of restoration and tens of billions of dollars.