Chevron commits over $7B to expand Venezuela operations after Trump deal opens access to massive oil reserves

Chevron is pouring over $7 billion into Venezuela over the next five years, betting big on a country that most Western oil companies abandoned nearly two decades ago. The investment, announced alongside a broader Trump administration deal granting US entities access to roughly 65 billion barrels of Venezuelan oil reserves, could reshape the global crude supply picture.

The plan calls for Chevron to double its production capacity in the country to approximately 600,000 barrels per day. That’s up from the roughly 260,000 bpd its joint ventures with state-owned PDVSA currently pump out, which already accounts for about a quarter of Venezuela’s total output.

What the deal actually looks like

Chevron’s expansion centers on new acreage in the Orinoco Belt, one of the largest petroleum deposits on the planet. The company is picking up stakes in Carabobo-1, Carabobo-2-South-A, and Ayacucho 8 for its Petropiar joint venture, paired with revised terms on its existing partnerships with PDVSA.

Production costs are targeted to stay under $20 per barrel.

The broader framework was facilitated by the Trump administration, which brokered a deal giving US interests control over about 20% of Venezuela’s oil reserves. Venezuela’s National Assembly approved the arrangement on September 1, 2026, clearing the legal path for American companies to ramp up investment.

US Energy Secretary Chris Wright is scheduled to visit Caracas around September 2-3, 2026, to finalize related agreements.

A domestic firm called North American Blue Energy Partners, or NABEP, is also part of the arrangement, serving as a collaborator for US access to Venezuelan reserves. Chevron, however, remains the headline player: it’s the only major US oil company that has maintained on-the-ground operations in Venezuela since the Chávez-era nationalizations that drove out most Western firms after 2007.

Why Chevron stayed when everyone else left

Chevron’s presence in Venezuela dates to 1923. When Hugo Chávez nationalized large swaths of the oil industry in 2007, companies like ExxonMobil and ConocoPhillips walked away. Chevron stayed, accepting minority stakes in joint ventures controlled by PDVSA. The energy landscape shifted further in January 2026 when US forces captured former President Nicolás Maduro, which led to Venezuela’s National Assembly approving hydrocarbons law reforms intended to attract foreign investment.

What this means for oil markets and investors

For Chevron shareholders, the $7 billion commitment represents a calculated bet on low-cost barrels. Sub-$20 production costs mean the investment would remain profitable even in a sustained downturn. The risk, of course, is political: Venezuela’s track record of honoring contracts with foreign energy companies is uneven.

The deal also carries implications for US energy security. Increasing crude imports from Venezuela, a country roughly 1,800 miles from the Gulf Coast, diversifies supply away from Middle Eastern producers and shortens shipping routes compared to alternatives from West Africa or the Persian Gulf.