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Chevron will expand its Venezuela operations with fresh Orinoco acreage and major investment. The move advances Washington's oil strategy, though legal and production doubts persist.
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Newyork,UPDATED: Sep 2, 2026 16:32 IST
Chevron has confirmed that it will expand its operations in Venezuela, days after US President Donald Trump announced a broad deal to develop the country's oil reserves and give the Pentagon a share in the profits.
The oil major said it has been assigned additional acreage in the Orinoco Belt, where it already has an established presence. Its joint venture plans include investing more than USD 7 billion over the next five years and more than doubling production to about 6,00,000 barrels a day compared with 2026.
"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," chief executive Mike Wirth said in a prepared statement. "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."
The announcement came a day after a US official, who briefed reporters on the expected move, said Chevron officials and Energy Secretary Chris Wright were expected to visit Venezuela on Wednesday, when the new investment would be formally unveiled. The official spoke on condition of anonymity under ground rules set by the White House for the call.
Chevron is the second-largest US oil company and the only one with a major presence in Venezuela. It has operated in the country since 1923. Its joint ventures Petroindependencia and Petropiar, S.A. run extra-heavy oil projects in the Orinoco Oil Belt, while Petroboscan, S.A. is based in Zulia state in western Venezuela.
The White House had confirmed on Monday that it is partnering with North American Blue Energy Partners as part of Trump's push to tap Venezuela's oil industry. Analysts have, however, reacted sceptically to the wider agreement, saying it could take years to revive Venezuela's production after years of neglect.
Energy experts have also questioned whether Venezuela's acting President Delcy Rodrguez has the legal authority to grant the company 100-year rights over 17 oil fields with reserves of 65 billion barrels, and whether future Venezuelan or American administrations might reverse the agreement. Trump has long focused on Venezuela's oil since the capture of Nicols Maduro, and his aides have described it as a way to reduce reliance on Middle East oil. Overall, Chevron's expansion marks a major new step in that effort, even as questions remain over the timeline and legal basis of the broader plan.
With PTI Inputs
- Ends
Published By:
India Today Web Desk
Published On:
Sep 2, 2026 16:32 IST
