Chevron signed two landmark agreements with Venezuela’s state-owned oil company, Petróleos de Venezuela (PDVSA), to significantly expand its oil production and stake in the country’s energy sector.
Key Components of the New Deal
The agreements center on an asset swap and increased investment in the Orinoco Oil Belt.
Chevron increased its ownership in the Petroindependencia joint venture from 35.8% to 49%.
Chevron received rights to the Ayacucho 8 oil area, which will be integrated into its existing Petropiar project to boost heavy crude production.
In exchange, Chevron gave up its rights to the Loran offshore gas field and its stake in a minor oil project in western Venezuela.
Chevron aims to increase its Venezuelan output by up to 50% over the next two years.
Context of the Agreement
These deals are the first major expansions following a series of dramatic political and regulatory shifts in early 2026.
The agreements follow the January 2026 capture of former President Nicolás Maduro and the installation of interim president Delcy Rodríguez, who has prioritised attracting foreign investment.
A sweeping hydrocarbons law amendment passed in January 2026 now allows private companies to control production and sales, even as minority stakeholders.
The pacts align with a $100 billion reconstruction plan launched by the U.S. to revive Venezuela’s energy infrastructure.
Impact on Operations
Chevron currently operates four joint ventures in Venezuela, which contribute nearly 25% of the country’s total oil output (approximately 260,000 barrels per day out of 1 million). This new deal cements Chevron’s position as the dominant private producer in the Orinoco Belt.
Note by Alessandro Bazzoni