Oil giant Chevron confirmed on Wednesday it would be expanding its operations in Venezuela only days after U.S. President Donald Trump announced an ambitious deal to develop the nation's oil reserves and give the Pentagon a stake in the profits.
Chevron said on Wednesday that it has been assigned additional acreage in the Orinoco Belt, where the company has an established position.
Joint venture plans include investing more than $7 billion over the next five years, more than doubling production to approximately 600,000 barrels a day compared to 2026.
"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," CEO Mike Wirth said in a prepared statement.
"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."
The announcement comes a day after a U.S. official, who briefed reporters on the expected announcement, said that Chevron officials and Energy Secretary Chris Wright were expected to visit Venezuela on Wednesday, where the new investment will be formally unveiled. The official spoke on condition of anonymity under ground rules set by the White House for the call.
Chevron is the second-largest U.S. oil company and the only one with a major presence in Venezuela.
It has had a presence in the country since 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.
The White House confirmed on Monday that it is partnering with North American Blue Energy Partners as part of Trump's push to tap into Venezuela's oil industry.
The sweeping agreement has been met with skepticism from analysts who say it will take years to revive Venezuela's production, which is in disarray after years of neglect.
Energy experts also have questioned about whether Venezuela's acting President Delcy Rodriguez has the legal authority to give the company 100-year rights over 17 oil fields with reserves of 65 billion barrels – and whether future Venezuelan or American administrations would overturn the agreement.
Trump has had his eyes on Venezuela's oil since the capture of Nicolas Maduro, and his aides call it a path away from reliance on oil from the Middle East.
Trump has been pressing for U.S. businesses to restore a presence in the country.
