Venezuela to grant new oil fields to Chevron as Caracas seeks to raise output: Report

Venezuela is set to award Chevron two additional oil fields in the country’s west, in a move that would expand the US energy major’s footprint in one of the world’s largest oil-producing nations as Caracas pushes to revive output and attract foreign capital, Bloomberg News reported Monday.

The award could be announced as soon as Monday, according to people familiar with the matter, marking the latest step in Venezuela’s effort to reopen its energy sector after years of sanctions, underinvestment, and production decline.

The planned expansion follows earlier reports that Caracas was preparing to offer Chevron additional acreage as part of a broader strategy to boost foreign participation in its oil industry and restore production capacity.

Chevron has maintained a presence in Venezuela for nearly two decades despite prolonged political turmoil, economic collapse, and restrictions on the country’s energy sector. That long-standing position has allowed the company to retain a key role even as other international oil majors scaled back operations or exited the market, according to the report.

The latest move comes amid renewed efforts by Caracas to attract foreign investment into its energy sector as it seeks to stabilize and increase output.

Renewed production ambitions have also gained urgency amid tighter global crude supplies and higher energy prices linked to geopolitical tensions, including disruptions to Middle East flows that have increased the strategic value of alternative suppliers.

The US company currently holds four joint ventures in Venezuela, including two projects in the Orinoco Belt and two in Zulia, historically one of the country’s key oil-producing regions.

Together, those ventures account for nearly 25% of Venezuela’s total output, which is currently close to 1 million barrels per day.

Chevron’s roots in Venezuela go back more than a century. While some foreign companies, including Shell and Repsol, have maintained limited operations in the country, other US oil majors such as Exxon Mobil and ConocoPhillips exited following asset expropriations.

Even after sanctions were imposed on Venezuela eight years ago, Chevron continued drilling under US Treasury waivers, preserving a position that now appears set to expand further as Caracas seeks to rebuild its oil sector.