Chevron will expand its operational footprint in Venezuela, committing to invest more than US$7 billion (AU$10.5 billion) over the next five years to more than double its local output.
The oil and gas major signed agreements with Venezuelan authorities that establishes updated fiscal, commercial, and legal terms across Chevron’s Venezuelan joint ventures.
As part of the revised framework, the company’s subsidiary has secured additional acreage in the Orinoco Belt, including development rights to the greenfield Carabobo-1 and Carabobo-2-South-A areas via its 49 per cent-owned Petroindependencia joint venture.
The fresh investment aims to ramp up Chevron’s local production to roughly 600,000 barrels per day within five years, up from 2026 baseline levels.
The company noted that with total extraction costs remaining below US$20 per barrel, Venezuela represents a highly competitive platform for low-cost crude growth under its cash-management strategy.
Chevron Chairman and CEO Mike Wirth hailed the expanded framework as a significant step forward for the global energy giant’s long-standing South American presence.
“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,” 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.”
Wirth also credited international diplomatic engagement for facilitating the commercial conditions necessary to execute the landmark deal.
The agreement builds on momentum established earlier this year when Chevron raised its working interest in Petroindependencia to 49 per cent while gaining access to the Ayacucho 8 area.
Across its three active Venezuelan joint ventures, Chevron has already driven a 15 per cent year-to-date increase in crude production.
