Chevron Targets 600,000 Barrels a Day in Venezuela With More Than $7 Billion in Investment
Key Facts
Chevron is targeting an increase in its oil production in Venezuela to about 600,000 barrels a day, with more than $7 billion in investment over the next five years, according to a plan the company announced on September 2, 2026. The company said the production target is more than double 2026 levels, while the Associated Press reported that the plan aims to raise current output to about 600,000 barrels a day. The announcement came as part of agreements with Venezuela that set updated terms for joint ventures and support investment, project development and production growth. The target is therefore not a new announcement on October 30, but an earlier plan that has resurfaced in subsequent coverage. In a separate statement in September, the company's CFO said current production was about 280,000 barrels a day and that reaching 600,000 was likely in 2031.
The plan is also linked to an expansion of development in the Orinoco Belt, where the arrangements included granting the Petroindependencia project development rights in the Carabobo-1 and Carabobo-2-South-A areas. The Associated Press said Chevron, the only major U.S. oil company with a presence in Venezuela, had secured additional acreage in the belt. The company, along with Italy's Eni and other energy companies, signed agreements with the Venezuelan government at a ceremony in Caracas. U.S. officials at the event said the agreements could open a path to investment and jobs, according to the news agency. The production plan thus links long-term investment with the development of new areas, while the timing of the conversion of rights and investment into actual production remains dependent on execution.
The plan comes in a country with proven oil reserves of more than 303 billion barrels, according to OPEC's 2025 Annual Statistical Bulletin, as reported by the Associated Press. But the size of the reserves does not match current production levels: an International Energy Agency report put Venezuela's output at 1.12 million barrels a day in July 2026 and 1.16 million in August. The agency estimated the country's production at slightly more than 1 million barrels a day at the time of its report, compared with Saudi production of between 10 million and 11 million barrels a day. The gap between resources and supply reflects the scope for increasing output, without meaning that reserves alone guarantee the target will be met. Chevron's CFO said total production costs were below $20 a barrel, while noting that the company did not expect to need new infrastructure or a major capital project to achieve the announced growth.
The plan faces challenges beyond the announced spending, with the Associated Press citing experts who said reviving Venezuela's oil industry could take years because of deteriorating infrastructure. Building new facilities in the Orinoco could take two to four years before they enter service, according to an estimate by an expert cited by the news agency. The CFO said Chevron intends to double the number of rigs it operates in the country, relying on existing facilities to avoid building major new infrastructure. The news agency also reported experts' doubts about whether Venezuela's acting president has the authority to grant long-term concessions, and the possibility that future Venezuelan or U.S. administrations could cancel the agreements. These concerns relate to an agreement granting «Napib» rights for 100 years in 17 oil fields, highlighting the political risks surrounding the durability of the arrangements.
Chevron shares closed at $231.46 on October 29, according to EL7 data, after closing at $233.21 on October 23 and $232.01 on October 26. The stock fell to $228.23 on October 27, then closed at $229.29 on October 28 before rising to its October 29 closing level. Separately, the company reported a 36% increase in third-quarter revenue to $67.8 billion, and its shares rose 1.8% in Friday morning trading on October 30, according to the Associated Press. The production plan remains tied to the next five years, while the CFO said reaching 600,000 barrels a day was likely in 2031 and that production could then stabilize in a range of 600,000 to 700,000 barrels a day. The company did not specify an explicit date for reaching the target in its statement, citing only the comparison with 2026 levels and the timeframe of the next five years.