Chevron, Eni commit to expand oil projects in Venezuela under US eye

Several major energy companies, including Chevron and Eni, pledged on Wednesday to invest in expanding oil projects in Venezuela under the watchful eye of interim President Delcy Rodriguez and U.S. Energy Secretary Chris Wright. The agreements were signed in a ceremony in Caracas, focusing on project expansions previously discussed with Venezuela's Oil Ministry and state-owned PDVSA as part of a major oil reform implemented in January.

Although the signings mark a continued presence from established firms, they come at a time when Venezuela's oil industry produces only around 1.25 million barrels per day, a far cry from its 3 million barrels per day peak in the late 1990s.

Corporations like Chevron, Eni, and GE Vernova have largely avoided large-scale investments in Venezuela since 2007, following a nationalization that deterred them. The country's oil production has suffered due to a lack of investment, poor management, and U.S. sanctions, which the latter is now attempting to reverse with a $100 billion investment plan aimed at doubling Venezuela's output in the upcoming years.

During the signing ceremony, U.S. Energy Secretary Wright emphasized the urgency of the transformation, stating, "We are trying to work at what I call Trump-speed." GE Vernova signed a power sector alliance, while Eni committed to a $1.5 billion expansion of its operations in the Junin 5 heavy oil area in the Orinoco Belt. Chevron has pledged over $7 billion to double its output in Venezuela to approximately 600,000 barrels per day within five years.

Venezuelan businessman Alejandro Betancourt, whose company NABEP recently signed a separate deal with Washington to access a fifth of the nation's oil reserves, was notably absent from the event. U.S. officials defended their choice of NABEP, highlighting its scale, technological capabilities, and proven track record, as well as the U.S. oversight of funds.