HOUSTON, Sept 2 — Chevron Corporation (NYSE: CVX) today announced agreements with Venezuela that establish updated terms for its joint ventures, supporting future investment, project development and production growth in the country.
The agreements set out provisions for Chevron’s joint ventures in Venezuela, including enhanced fiscal, commercial and legal terms intended to support durable and competitive long-term investments. As part of the agreements, Chevron has been assigned additional acreage in the Orinoco Belt, where the company has an established position. The enhancements underpin joint venture plans to invest over $7 billion over the next five years, more than doubling production to approximately 600,000 barrels a day compared to 2026. With total costs of less than $20 per barrel and a large resource base, Venezuela is a platform of differentiated oil growth under Chevron’s disciplined cash management model.
“Chevron’s history in Venezuela spans more than a century, and our expanded position reflects our confidence in the country’s deep resource potential and its ability to compete for investment within our portfolio for decades,” said Mike Wirth, Chevron Chairman and Chief Executive Officer. “With improved terms and additional acreage, we are strengthening a portfolio that we believe can deliver attractive low-cost oil growth, support energy supply and create differentiated long-term value. This progress reflects the dedication of our Venezuelan employees and our long-standing focus on the responsible development of the country’s resources.”
Under the agreements, the Petroindependencia, S. A. joint venture, in which Chevron’s subsidiary holds a 49% interest, has been assigned the rights to develop the adjacent Carabobo 1 and Carabobo-2-South-A areas located in the Orinoco Belt of Venezuela. The greenfield sites expand the joint venture’s existing operational footprint where it is increasing extra-heavy oil production.
The additional sites further strengthen Chevron’s growing portfolio in Venezuela following an agreement in April in which Chevron increased its working interest in Petroindependencia to 49% and received the rights to develop the Ayacucho 8 area adjacent to the Petropiar, S.A. joint venture. Collectively, Chevron’s three joint ventures have grown production by 15% year-to-date.
“We appreciate the leadership of the Administration, particularly the U.S. Department of Energy, and Secretary Wright’s partnership in helping facilitate the conditions for further investment and growth,” said Wirth. “Continued engagement between government and industry is essential to advancing projects that support energy security, economic growth and continued investment.”
Chevron is one of the leading energy companies in Venezuela, with a presence that dates back to 1923. Its joint ventures Petroindependencia and Petropiar, S.A. operate extra-heavy oil projects in the Orinoco Oil Belt, while Petroboscan, S.A. is located in the Zulia State in Western Venezuela.