Chevron said Wednesday it will expand its oil operations in Venezuela, focusing on the Orinoco Belt region that holds much of the country's reserves. The Houston company, already the largest foreign operator there, outlined plans to raise output through additional investment in existing facilities.
Under the joint venture, Chevron intends to commit more than $7 billion over the next five years to reach production of about 600,000 barrels per day. Company chief executive Mike Wirth described the agreement as an important milestone that supports long-term investment and growth opportunities for partners and local communities.
The announcement follows a deal reached last Friday under which Venezuela will provide the United States access to 65 billion barrels of oil across 17 fields. That arrangement involves a joint venture with North American Blue Energy Partners and aligns with encouragement from the Trump administration for American firms to participate in Venezuelan energy projects.
U.S. Secretary of Energy Chris Wright called the development transformative during remarks in Caracas, emphasizing energy as a driver for economic improvement across the hemisphere. Venezuela currently operates under interim president Delcy Rodríguez, who assumed the role after the January capture of former leader Nicolás Maduro.
Other American energy companies have shown reluctance to return after exiting years earlier. ExxonMobil chief executive Darren Woods previously labeled the country uninvestable during a January White House discussion. Chevron has maintained a presence since the 1920s, including after nationalization in 1976 and tighter controls in the 1990s.
Significant hurdles remain before output can rise substantially. Much of the infrastructure has deteriorated over more than a decade due to past corruption and low prices, requiring extensive repairs before sustained increases are feasible, according to LAist reporting.
Analysts note that restoring production to levels seen in the 1990s would require more than a decade and roughly $183 billion. Historian Alejandro Velasco compared the situation to reaching for a lottery ticket just out of reach, while Rystad Energy's Jorge Leon stressed that multiple challenges must be addressed before any meaningful ramp-up.
This report is based on coverage by LAist: https://laist.com/news/chevron-to-expand-in-venezuela-days-after-the-us-and-venezuela-strike-oil-deal