BAKU, Azerbaijan, September 2. Chevron
Corporation has reached agreements with Venezuela establishing
updated terms for its joint ventures, paving the way for additional
investment, project development and higher oil production in the
country.
Chevron said the agreements provide the company’s joint ventures
with enhanced fiscal, commercial and legal terms designed to
support long-term investment. They also expand the company’s
operating footprint in Venezuela’s Orinoco Oil Belt through the
allocation of additional acreage.
Under the new framework, Chevron and its partners plan to invest
more than $7 billion over the next five years, with production
expected to more than double to approximately 600,000 barrels per
day, compared with 2026 levels.
Chevron said the projects have total costs of less than $20 per
barrel, while Venezuela’s large resource base provides the company
with significant potential for further oil production growth.
As part of the agreements, Petroindependencia, S.A., in which a
Chevron subsidiary holds a 49% interest, has been granted rights to
develop the adjacent Carabobo-1 and Carabobo-2-South-A areas in the
Orinoco Belt.
The new greenfield areas will expand the joint venture’s
existing operations, which focus on the production of extra-heavy
crude.
The move follows an agreement reached in April under which
Chevron increased its working interest in Petroindependencia to 49%
and obtained rights to develop the adjacent Ayacucho 8 area near
its Petropiar, S.A. joint venture.
Chevron said production across its three Venezuelan joint
ventures has increased by 15% year-to-date.
“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,” Chevron Chairman and CEO Mike Wirth
said.
“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,” he added.
Chevron has operated in Venezuela since 1923. Its
Petroindependencia and Petropiar joint ventures operate extra-heavy
oil projects in the Orinoco Oil Belt, while Petroboscan operates in
western Venezuela’s Zulia state.
Venezuela remains one of the world’s major oil-resource holders
and a significant OPEC producer, but its actual production is far
below its historical levels. OPEC’s latest statistical data put
Venezuela’s proven crude oil reserves at about 303 billion barrels,
the largest among OPEC members. Average crude production was around
921,000 barrels per day in 2024, according to OPEC.
Production subsequently increased during 2025. According to
OPEC’s direct-communication data, Venezuelan crude output reached
1.069 million barrels per day in June 2025, compared with 982,000
bpd in the first quarter and 933,000 bpd in the fourth quarter of
2024.
The increase reflects efforts to restore production capacity and
develop Venezuela’s heavy-oil resources. The country’s oil industry
remains centered on PDVSA, while foreign companies have
participated through joint ventures and other arrangements.
Venezuela’s crude is predominantly heavy and extra-heavy, meaning
production and refining require specialized infrastructure and
technology.
Venezuela’s refining sector also remains strategically important
but faces significant infrastructure and operational constraints.
OPEC reported that the country had around 1.3 million barrels per
day of installed refining capacity in 2024, while actual refinery
throughput was considerably lower.
The Venezuelan oil sector remains closely connected to the
international sanctions and licensing environment. Changes in the
ability of foreign companies to operate in Venezuela can have a
direct impact on production, investment, exports and access to
technology.
