Chevron To Invest $7 Billion In Venezuela And Double Production

Chevron (CVX) and SLB signed oil deals with Venezuela, with Chevron agreeing to a $7B investment to double production. The Trump administration also secured a 35% stake in North American Blue Energy Partners. Experts note that smaller firms are wary of the risks involved, including political uncertainty and infrastructure challenges.

Chevron (CVX) announced new agreements with Venezuela to invest $7B over five years, aiming to double oil production to 600,000 barrels/day by 2026. The deal includes new acreage in the Orinoco Belt, with production costs below $20/barrel. This follows a strong Q2 earnings report where Chevron reduced debt by $8B and saw record production in the U.S.

U.S. Energy Secretary Chris Wright announced an agreement with GE Vernova to stabilize Venezuela's power grid within six to 12 months. GE Vernova plans to add 1 GW of capacity in 24 months and 5 GW over four years. The U.S. Department of Energy described Venezuela's electrical system as a critical bottleneck. Chevron and Eni also made significant oil investment commitments in Venezuela.

Venezuela's oil production is increasing, with Chevron and NABEP (backed by the US) investing billions. Despite selling more oil to the US, Venezuela faces cash shortages due to US-controlled accounts. Oil sales to the US have grown sharply, while China's purchases have become harder. Venezuela's inflation is easing but remains high, and the country lacks physical cash.

Eni SpA secured a 25-year agreement with PdVSA to operate the Junín-5 oilfield in Venezuela, holding 35 billion barrels. Eni will manage the project, producing 12,000 barrels per day. Chevron also announced $7 billion in Venezuelan investments, aiming to double production to 600,000 barrels per day.

Chevron plans to invest $7 billion in Venezuela over five years, aiming to double oil production to 600,000 bpd. NABEP secured control of oilfields with 65 billion barrels of reserves, planning $100 billion in investments. Chevron and Shell also signed a preliminary agreement for Ghana's South Deepwater Tano block. SOCAR acquired stakes in Comstock Resources' Haynesville shale assets for $1.65 billion. Shell bought into BP-operated prospects in the Gulf of Mexico and Brazil.