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

Chevron commits $7 billion over five years to Venezuelan joint ventures, targeting 600,000 barrels daily, double the country's current output.

Ali Moshiri predicted supermajors would enter Venezuela slowly, but Chevron's multi-billion commitment arrived within days of Trump's 25-year reserve deal.

Venezuelan production collapsed from 3.2 million to 1.2 million barrels daily, and experts warn meaningful recovery remains years away despite the headline investment.

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CNBC's Becky Quick reported on Wednesday, September 2, that Chevron ( NYSE:CVX ) 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.

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