Chevron Commits $7 Billion to Venezuela to Double Production to 600,000 Barrels a Day

CNBC’s Becky Quick reported on Wednesday, September 2, that Chevron (NYSE:CVX | CVX Price Prediction) is expanding its position in Venezuela through joint ventures, with the deal landing within days of the U.S.-Venezuela reserve arrangement that Washington disclosed last week.

According to Quick, “[Chevron is] saying that it is expanding its position in Venezuela with joint ventures. As part of the agreements, it will gain existing acreage where it’s established a position.” She added: “Its joint venture will invest more than $7 billion over the next five years, and it plans to double production to approximately 600,000 barrels a day.“

This investment plan targets production over a five-year horizon. Announced targets remain subject to execution risk, political developments, and the physical realities of restarting output in a country whose oil sector has been effectively closed to Western majors.

Chevron Is Moving Faster Than One Former Executive Expected

On August 28, former Chevron Africa and Latin America president Ali Moshiri argued that Venezuelan oil is a good solution for American energy security because it avoids the Strait of Hormuz, the Red Sea, and the Black Sea chokepoints. He advocated for public-private partnership because heavy and extra-heavy crude requires specialized technology the country lost after 15 years outside global markets.

Moshiri predicted the majors would move slowly on entry protocols while smaller and midsize firms moved faster. A more than $7 billion commitment from a supermajor within days of the reserve announcement cuts against that timeline.

On August 31, CNBC’s Brian Sullivan reported that Venezuelan national production has fallen from roughly 3.2 million barrels per day in 1997 to about 1.2 million today, said infrastructure is dilapidated, and cautioned that meaningful extraction is years away. Sullivan also flagged that majors would likely demand multi-year security guarantees before committing billions.

Chevron Is the First Major to Put Real Money Behind the Venezuela Deal

On August 28, President Trump announced a reported deal involving a 25-year lease of 65 billion barrels of proven reserves, with the U.S. controlling 55% and reportedly $100 billion-plus in U.S. energy company investment, with Chevron, Exxon and ConocoPhillips named as prospective participants. Sullivan noted the physical and legal structure was still unknown. Chevron’s announcement today is the first concrete corporate commitment towards that $100 billion number.

Venezuela is familiar territory for Chevron.

In the Q4 2025 earnings release, CEO Mike Wirth said Chevron had “been a part of Venezuela’s past for more than a century” and stood ready to help the country “build a better future while strengthening U.S. energy and regional security.”

Key Takeaways

Chevron’s $7 billion commitment gives Venezuela’s oil reopening its first major corporate backing. But doubling production will require much more than capital, with deteriorated infrastructure, security guarantees and execution risk standing between today’s announcement and 600,000 barrels per day.

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