- Chevron is the only U.S. oil major active in Venezuela through joint ventures with state-owned oil company PDVSA.
- Chevron has been assigned two additional oilfields in the Orinoco Belt, the region that contains most of Venezuela's vast extra heavy crude reserves.
- Chevron plans to increase its production in the country to 600,000 barrels per day compared with around 280,000 bpd currently.
- Chevron will expand operations through a $7 billion investment.
- Chevron CEO Mike Wirth said in a statement: "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."
- The country's oil infrastructure is in a state of disrepair after years of mismanagement by its socialist government.
Chemron has been assigned two additional oilfields in the Orinoco Belt, which holds most of Venezuela's vast extra heavy crude reserves. The company aims to boost its production from 280,000 bpd to 600,000 bpd through a $7 billion investment.234
Chevron is currently the only U.S. oil major active in Venezuela, operating through joint ventures with state-owned PDVSA. CEO Mike Wirth stated, "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."15
This expansion comes as the U.S. government seeks to increase oil production in Venezuela via private investment, addressing the country's oil infrastructure, which has deteriorated due to years of mismanagement by its socialist government. The U.S. has partnered with North American Blue Energy Partners (NABEP) to develop Venezuela's oil reserves, with NABEP receiving 100-year concessions to 17 oilfields from the interim government. Additionally, NABEP has granted the U.S. Defense Department a 35% equity stake in the venture.
President Donald Trump previously noted that the U.S. secured majority control over 65 billion barrels of Venezuela's crude oil reserves, representing about 20% of the country's estimated 303 billion barrels.
“Chevron, the only U.S. oil major active in Venezuela, gains two additional Orinoco Belt oilfields through joint ventures with state-owned PDVSA. CEO Mike Wirth says the improved terms and acreage will deliver attractive low-cost oil growth, despite the country's infrastructure disrepair.”
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