Chevron announced on Wednesday, September 2, 2026, that it will expand its oil operations in Venezuela through a $7 billion investment over the next five years. The Houston-based company plans to double its production to approximately 600,000 barrels per day.
This announcement follows an August 28 agreement between the Trump administration and Venezuela to develop 17 oil fields containing an estimated 65 billion barrels of oil. Venezuela is currently led by interim president Delcy Rodriguez, who assumed office after the U.S. captured former President Nicolás Maduro in January. The U.S. government is partnering with North American Blue Energy Partners (NABEP) in a joint venture where the Pentagon holds a 35% stake and the State Department maintains the right to buy 20% of produced oil at cost.
Chevron CEO Mike Wirth stated in an online release that the company has been assigned rights to develop the Carabobo 1 and Carabobo-2-South-A areas in the Orinoco Belt. Wirth said the expansion reflects confidence in the country's "deep resource potential" and its ability to compete for investment. The company noted that it costs approximately $20 per barrel to produce oil in the region.
A person in the U.S. or Venezuela would not see an immediate change in fuel prices or availability due to the state of Venezuela's infrastructure. Jorge Leon, head of geopolitical analysis at Rystad Energy, stated that sustained production increases require solving existing issues with leaky equipment and rusty facilities. Rystad analysts estimated in January that restoring Venezuela's production to 1990s levels of 3 million barrels a day would require more than a decade and $183 billion in investment.
The agreement also involves the Pentagon's Office of Strategic Capital holding a direct ownership stake in the NABEP joint venture. The deal faces potential legal challenges. The Venezuelan Constitution requires the National Assembly to approve such contracts with foreign governments, a step that has not occurred. Furthermore, while a U.S. official said partner Alejandro Betancourt was vetted and found to have violated no U.S. laws, he has previously faced investigations for alleged money laundering in Spain and Switzerland.
Company officials and Energy Secretary Chris Wright were expected to visit Venezuela on Wednesday, September 2, to formally unveil the investment. The long-term success of the project depends on the stability of the interim government and whether future U.S. or Venezuelan administrations will uphold the 100-year rights granted under the deal.