147-year-old oil giant just made high-stakes bet in Venezuela

Chevron (CVX) plans to invest $7B in Venezuela, doubling its production to 600K barrels/day. The company received two new oilfields in Venezuela's Orinoco Belt. CVX is the only major U.S. oil company still operating in Venezuela. CVX stock has risen 30% over the past year, trading at $211.05.

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.

Chevron Corp. secured a landmark deal in Venezuela, gaining access to billions of barrels of oil reserves. The company plans to invest $7 billion over five years, aiming to produce 600,000 barrels per day. Chevron's long-term strategy involved enduring US sanctions and political challenges, with potential annual free cash flow of $1.5 billion at $70-a-barrel Brent, according to TD Cowen analyst Jason Gabelman.