The United States and Venezuela are fast-tracking their oil partnership. Energy heavyweights including Chevron and ENI signed multiple production expansion agreements in Caracas on Wednesday, pledging significant investment to boost output from the OPEC member nation. On the same day, the White House signaled that crude from the deal could begin filling US strategic reserves as early as November.
Chevron announced a $7 billion investment through joint ventures in Venezuela over the next five years, projecting production of approximately 600,000 barrels per day by 2031 — more than double current levels. The company stated that all-in lifting costs for the relevant projects are expected to remain below $20 per barrel, while Brent crude traded at roughly $95 per barrel on Wednesday. Following the announcement, Chevron shares closed up 0.35% at $211.78 on Wednesday, surpassing its March high to hit an all-time record.
White House spokesperson Anna Kelly said in an interview that day that oil acquired through the agreement with Venezuela could reach the US reserve system by November. According to Chinese state media reports, Venezuelan acting president Delcy Rodríguez met with US Energy Secretary Chris Wright on September 2. Following the meeting, the two nations formally signed multiple cooperation agreements.
Earlier, former President Donald Trump took to social media to declare that the US had reached a deal with Venezuela, securing "majority control" over more than 65 billion barrels of Venezuela's proven oil reserves. Acting President Delcy Rodríguez stated that the oil cooperation pact with Washington will last 25 years, with a target of raising crude output to 1.5 million barrels per day while safeguarding Venezuela's sovereignty over its natural resources. Venezuela currently produces roughly 1.25 million barrels per day — far below its peak of 3 million barrels per day in the late 1990s.
Chevron Commits Over $7 Billion to Double Output Within Five Years
The Chevron deal represents the largest single commitment in this round of negotiations. The company plans to invest $7 billion through joint ventures over the next five years, securing development rights for the Carabobo 1 and Carabobo-2-South-A fields, both adjacent to Petroindependencia, a venture in which Chevron holds a 49% stake. The goal is to boost Venezuela production from current levels to 600,000 barrels per day within five years — a twofold increase. CEO Mike Wirth said the company is building a "substantial strategic position" in Venezuela, describing the two fields as holding "billions of barrels of resource equivalent." Wirth noted that some Venezuelan reserves previously written down years ago will be restored to the books, and the agreement includes "significant protection mechanisms." Chevron typically ships Venezuelan crude to its Gulf Coast refineries in the US; with lifting costs below $20 per barrel versus Brent at roughly $95, the project economics offer substantial margins.
The signing ceremony took place at Miraflores Palace in Caracas. Chevron is one of the few international majors that remained in Venezuela after former President Hugo Chávez nationalized assets in 2007, and this agreement further cements its strategic foothold in the country.
ENI Enters Orinoco Belt, Focused on Real Output
Beyond Chevron, Italy's ENI secured a 25-year exclusive operating contract for the Junin 5 block and will begin drilling on Thursday. CEO Claudio Descalzi described the block as holding more than 35 trillion cubic feet of natural gas with "enormous potential," and plans to submit a development plan in October. "We don't just need to sign papers — we need actual barrels produced," Descalzi said bluntly at the ceremony. Most of these agreements are not isolated deals but part of a broader migration of dozens of energy contracts to new terms under Venezuela's sweeping oil reform framework approved in January, with negotiations running for months.
Other participants in Wednesday's signings included power company GE Vernova, energy firm Primavera, and Denver-based oilfield services company Aspect. GE Vernova formed a strategic alliance with PDVSA and inked a deal with state power company Corpoelec aimed at repairing and strengthening Venezuela's dilapidated electricity and energy infrastructure. Venezuela's fossil fuel industry has been battered for years by mismanagement, corruption, and sanctions, with power and infrastructure shortfalls a persistent bottleneck to output growth.
Washington's Expanding Role: NABEP Stake Talks Underway
The US government's role in this deal is extending from policy architect to potential direct financial stakeholder. Earlier this week, Washington opened negotiations to acquire a 35% equity stake in NABEP, a private company holding century-long concessions on 17 Venezuelan oil fields. If completed, Washington would indirectly participate in the development and revenue distribution of these core assets. Speaking at the Caracas ceremony, US Energy Secretary Chris Wright called the deals worth "hundreds of billions of dollars," describing them as "transformational for Venezuela" and stressing that "we in the US have a massive interest in expanding energy production in the Americas — this is our neighborhood." Acting President Delcy Rodríguez said these "historic" steps would soon deliver economic growth and thanked the Trump administration for pushing a "win-win" agreement.
Wirth also cautioned that new Venezuelan supply would enter the market "gradually," and that the investment is not a "quick fix" for shipping disruptions in the Strait of Hormuz — "these investments take years." Even if Chevron's expansion plan proceeds smoothly, Venezuela's output would still remain far below its nearly 3.5 million barrels per day peak in the late 1990s.