Chevron on Wednesday unveiled plans to more than double its oil production in Venezuela over the next five years, backed by a $7 billion investment that significantly expands its footprint in the South American country.
The company said it has been assigned two additional oilfields in the Orinoco Belt, the region that holds most of Venezuela’s vast extra-heavy crude reserves. With the new acreage, Chevron aims to lift its output in Venezuela to 600,000 barrels per day (bpd), compared with roughly 280,000 bpd today.
Chevron is the only U.S. oil major still active in Venezuela, operating through joint ventures with the state-owned oil company PDVSA. The expansion marks a notable step for the company as it deepens its involvement in a country that holds some of the world’s largest proven oil reserves but has struggled with underinvestment and political turmoil.
Improved terms and low-cost growth
In a statement, Chevron CEO Mike Wirth said the new acreage and improved terms would allow the company to strengthen a portfolio that can deliver attractive, low-cost oil growth, support energy supply and create differentiated long-term value.
The announcement underscores Chevron’s strategy of focusing on assets it believes can generate strong returns even in a volatile oil market, with Venezuela offering relatively low-cost production potential despite its geopolitical and operational challenges.
The company’s current production in Venezuela is already a key part of its global output, and the planned increase would make the country an even more important contributor. Chevron has been expanding its operations there since Washington eased sanctions on the country’s energy sector, allowing the company to boost output and resume exports to the United States.
The five-year timeline means the full production target of 600,000 bpd would be reached around 2031, assuming the investment proceeds as planned and conditions remain conducive.
Chevron shares did not show a major reaction in premarket trading following the announcement. The news adds to a series of recent moves by international oil companies to secure access to resources in Venezuela, though Chevron’s position remains unique given its status as the sole U.S. major operating there.
Analysts are likely to watch how the company finances the $7 billion investment and whether it can navigate ongoing sanctions, political risks, and the operational hurdles of working with PDVSA.
This is a developing story and may be updated as more details emerge.
Source: www.cnbc.com — https://www.cnbc.com/2026/09/02/chevron-venezuela-operations.html
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