Chevron to invest $7 billion in Venezuela after new joint venture deal

U.S. Energy Secretary Chris Wright stated Venezuela's oil production could more than double in the coming years due to investments from U.S. and international companies, including Chevron, Eni, ONGC, GeoPark, and GE Vernova. This increase is expected to lower crude prices, though refining capacity remains a bottleneck for gasoline and diesel prices. Additionally, a separate agreement grants a U.S. company, NABEP, a 100-year lease on 17 Venezuelan oil fields with 65 billion barrels of reserves.

Chevron plans to expand operations in Venezuela, investing over $7 billion in the next five years. The company aims to double production to 600,000 barrels per day by 2026, following a U.S. deal to develop Venezuela's oil reserves. Chevron is the only major U.S. oil company with a significant presence in Venezuela.

Chevron plans to invest $7 billion to double its oil production in Venezuela to 600,000 barrels per day by 2029. The company has been assigned two additional oilfields in the Orinoco Belt, expanding its joint ventures with state-owned PDVSA. Chevron CEO Mike Wirth stated the investment will support energy supply and create long-term value.

Chevron agreed with Venezuela on updated joint venture terms, planning a $7 billion investment over five years to target 600,000 bpd. The deal includes additional acreage and enhanced fiscal terms, aiming to boost production at three joint ventures, which have already increased output by 15% this year. Total costs are expected to remain below $20 per barrel, according to the company.

The EPA granted 1.76 billion renewable fuel credits in exemptions for 2025, double earlier estimates, and plans to reallocate obligations to larger refiners. Marathon Petroleum and Chevron were among those granted exemptions. Ethanol blending credits rose 16%. The move may increase tensions between energy and agriculture industries ahead of elections.

Chevron plans to expand in Venezuela, backed by a new US-Venezuela agreement. The deal involves 17 oil fields with 100-year rights and 65 billion barrels. Chevron is the only major US producer remaining in Venezuela since 2007. The US government will have a stake in the new venture, with American citizens forming the board majority. Analysts are skeptical about quick output revival. Exxon has not changed its stance on Venezuela.