Chevron to Double Venezuela Oil Production with $7 Billion Investment Over Five Years

【Financial News, New York — Lee Byung-chul, correspondent】 U.S. oil major Chevron will invest $7 billion (approximately 9.7 trillion won) in Venezuela to more than double its crude oil production. This is the first major investment announced by a U.S. oil major since the Donald Trump administration ousted the Nicolás Maduro government. The United States is moving to expand global crude oil supplies by increasing Venezuela’s production while also stepping up efforts to push China and Russia out of the country’s oil industry.
Chevron said on the 2nd local time that it plans to invest $7 billion in Venezuela over the next five years, raising its current crude oil production from 280,000 barrels per day to 600,000 barrels per day. The company also agreed with Venezuela’s state-owned oil company, Petróleos de Venezuela, S.A. (PDVSA), on new terms for its local operations. In addition to increasing investment in existing joint ventures, Chevron secured development rights for two new oil fields in the Carabobo area of the resource-rich Orinoco Belt.
Mike Wirth, Chevron’s chief executive officer (CEO), said the investment “reflects our confidence in Venezuela’s vast resource potential.” He added that Chevron’s Venezuelan operations would become a competitive part of the company’s portfolio for decades to come.
Chevron also expects the investment to be economically attractive. Venezuelan crude contains a high proportion of heavy oil, making it relatively difficult to produce and transport. However, Chevron estimates total costs will remain below $20 per barrel. The newly acquired blocks are adjacent to those of its existing joint ventures, which could improve development efficiency.
Chevron’s major investment is aligned with the Trump administration’s strategy to restructure Venezuela’s oil industry.
The White House has recently been urging global energy companies to invest actively in Venezuela. The plan is to increase Venezuelan crude production and expand oil supplies over which the United States can exert influence. Chris Wright, secretary of the U.S. Department of Energy, is also expected to visit Venezuela’s capital, Caracas, this week to announce U.S. companies’ investment plans and encourage additional investment.
The United States has been particularly wary of China and Russia expanding their influence over Venezuela’s oil industry. Chevron was one of the few U.S. companies that maintained operations in the country even during the U.S. sanctions on Venezuela. In Washington, the company’s presence has been viewed as a means of countering China and Russia’s efforts to take control of the local oil industry.
Chevron’s production is already rising rapidly. According to RBC Capital, the company’s Venezuelan output has increased more than fivefold, from 50,000 barrels per day just a few years ago to 280,000 barrels per day today. If the investment proceeds as planned, production will rise again to more than double that level, reaching 600,000 barrels per day.




[email protected] Lee Byung-chul, correspondent Reporter