Venezuela and US energy giant Chevron have signed two major agreements aimed at expanding oil production in the country’s resource-rich Orinoco region, marking a significant step toward reviving the nation’s struggling energy sector. The agreements were signed during a formal ceremony at the Miraflores Palace in Caracas, attended by interim President Delcy Rodríguez, Chevron Venezuela President Mariano Vela, and senior US officials. The move reflects Venezuela’s renewed efforts to attract foreign investment and boost crude output.
Under the deals, Chevron will increase its stake in a joint venture with state-owned oil company PDVSA, focusing on heavy crude extraction in the Orinoco Oil Belt—one of the largest oil reserves globally.
In exchange, the US oil major will relinquish certain offshore gas assets, including key exploration rights, as part of a strategic asset swap designed to streamline operations and prioritize high-yield oil projects.
Officials said the agreements could significantly boost production capacity, with Chevron targeting a potential increase of up to 50% in output over the next two years. The company currently contributes roughly a quarter of Venezuela’s total oil production through its joint ventures.
The deals come amid sweeping reforms in Venezuela’s oil sector introduced earlier this year. The government has relaxed long-standing state controls, allowing foreign companies greater operational autonomy and profit-sharing opportunities to attract global investors.
At the same time, the United States has eased certain sanctions on Venezuela’s oil industry, enabling American firms to re-engage in the market and support production recovery.
Despite growing interest, industry experts note that challenges remain, including aging infrastructure, high investment requirements, and ongoing political uncertainty. However, the latest agreements signal renewed momentum in Venezuela’s energy sector as it seeks to restore output and strengthen its position in global oil markets.
