Chevron announced on Wednesday, September 2, 2026, that it has reached an agreement to expand oil production in Venezuela. The U.S. oil company plans to invest more than $7 billion over the next five years to increase its output to approximately 600,000 barrels per day. The deal grants Chevron additional acreage in the Orinoco Belt, specifically the adjacent Carabobo 1 and Carabobo-2-South-A areas.
The agreement follows encouragement from the Trump administration for U.S. energy firms to operate in Venezuela. While the Trump administration recently announced a separate partnership with North American Blue Energy Partners to access approximately 21 percent of Venezuela’s oil deposits, Chevron stated its new joint venture plans are distinct from that federal initiative. Chevron is currently the only major U.S. oil producer active in the country after ExxonMobil and ConocoPhillips departed in 2007.
Chevron CEO Mike Wirth stated the expanded position reflects confidence in the country’s resource potential and will deliver "attractive low-cost oil growth." According to Chevron, it costs the company approximately $20 per barrel to produce oil in Venezuela. The firm currently operates three joint ventures with the state-run oil company, PdVSA. Venezuelan Interim President Delcy Rodríguez indicated that similar deals may be in development with other international firms, including BP, Shell, Repsol, and Eni.
The deal establishes a significant financial precedent for private investment in Venezuelan infrastructure. By securing "improved terms" and rights to the Carabobo fields, Chevron is anchoring its long-term presence in a country estimated to hold 65 billion barrels of petroleum. For Venezuelan workers and the local economy, the $7 billion investment represents a substantial influx of capital into the Orinoco Belt, an area critical to the nation's primary export. The success of this venture may determine whether other U.S.-based service firms, such as Halliburton, proceed with their own reported negotiations to re-enter the Venezuelan market.
The primary knock-on effect is the potential for a broader re-entry of Western energy companies into the Venezuelan oil sector. If Chevron successfully manages the logistical hurdles and political environment, it may serve as a roadmap for the previously mentioned deals involving BP and Shell. The timeframe for this shift is immediate, with the $7 billion investment scheduled to occur over the next five years. What happens next involves the implementation of the joint venture plans and the possible finalization of additional contracts between the Venezuelan government and other international energy firms.