US oil giant Chevron confirms it will expand operations in Venezuela

Oil behemoth Chevron has announced plans to expand its operations in Venezuela, following President Donald Trump's announcement of a significant deal to develop the country's oil reserves and grant the Pentagon a stake in the profits. As the only US oil company with a major presence in Venezuela, Chevron was recently granted additional acreage in the Orinoco Belt, where it currently operates.

The company intends to invest over $7 billion over the next five years, with the aim of more than doubling production from its 2026 level to approximately 600,000 barrels per day.

Chevron's presence in Venezuela spans over a century, reflecting the company's confidence in the country's vast resource potential. However, Venezuela's energy infrastructure is severely depleted, and the nation is currently operating under international sanctions, resulting in a daily production of just over 1 million barrels, compared to the US's production of almost 14 million barrels per day.

Despite this, Chevron has been active in Venezuela since 1923, with its joint ventures, Petroindependencia and Petropiar SA, focusing on extra-heavy oil projects in the Orinoco Oil Belt, and Petroboscan, SA located in Zulia State, western Venezuela.

The US partnership with Venezuela has received skepticism from analysts, who express concerns over the timeline to revive the oil industry, which has been neglected due to years of disarray. There are also questions about the legitimacy of the agreement, as it was signed by a Venezuelan acting president, Delcy Rodríguez, which has not been approved by the National Assembly.

Furthermore, the agreement was reportedly reached under pressure from the US, raising doubts about its future acceptance by a future Venezuelan democracy.