Chevron takes new Orinoco acreage and plans to lift Venezuela output to 600,000 barrels a day
Chevron said on Wednesday that it has been assigned additional acreage in Venezuela's Orinoco Belt. Its joint ventures plan to invest more than 7 billion dollars over the coming five years and to lift output to about 600,000 barrels a day, twice today's capacity. The agreements set new fiscal, commercial and legal terms for Petroindependencia, Petropiar and Petroboscan, and the company received rights to develop Carabobo 1 and Carabobo-2-South-A. The announcement follows the Venezuela deal President Donald Trump set out on 28 August.
Economics & Markets··Evening
The joint ventures plan more than 7 billion dollars over five years
Chevron said on Wednesday that it has been assigned additional acreage in Venezuela's Orinoco Belt. Its joint ventures plan to invest more than 7 billion dollars over the coming five years and to raise output to about 600,000 barrels a day. BNN Bloomberg wrote that the level amounts to more than double current production. CBS News reported that the target is twice the company's present capacity and that Chevron is the only US oil company operating in Venezuela. The agreements set new fiscal, commercial and legal terms for the Petroindependencia, Petropiar and Petroboscan ventures. Petroindependencia and Petropiar produce extra-heavy crude in the Orinoco Belt, while Petroboscan sits in Zulia State in the west of the country.[1], [2]
The Carabobo rights and a cost of 20 dollars a barrel
Chevron said it has been assigned rights to develop the adjacent Carabobo 1 and Carabobo-2-South-A areas. CBS News reported that the company puts the cost of producing oil in Venezuela at about 20 dollars a barrel. Chief executive Mike Wirth said improved terms and additional acreage strengthen a portfolio the company believes can deliver attractive low-cost oil growth. Wirth said that portfolio supports energy supply and creates differentiated long-term value. Chevron has operated in Venezuela since 1923, and CBS News described it as the second-largest US oil company.[1], [2]
Trump's deal, the world's largest proven reserves and a warning on timing
The announcement follows the Venezuela deal President Donald Trump set out on 28 August; CBS News wrote that it created a private joint venture over oil fields containing 65 billion barrels. US Energy Secretary Chris Wright is expected in Venezuela on Wednesday, where the investment is to be formally unveiled. OPEC's 2025 Annual Statistical Bulletin puts Venezuela first in the world with more than 303 billion barrels of proven reserves, ahead of Saudi Arabia with 267 billion barrels. Trump said the deal will help lower US gasoline prices and refill the Strategic Petroleum Reserve, which has dropped to historically low levels. Dan Alamariu, chief geopolitical strategist at Alpine Macro, wrote in a research note that meaningful new barrels are years away, that much of Venezuela's oil is extra-heavy crude sitting behind decayed infrastructure, and that output growth requires substantial investment and time.[1], [2]
