Chevron moved Wednesday to more than double its oil production in Venezuela over the next five years through a $7 billion investment that expands its position in the South American nation.
The oil major has been assigned two additional oilfields in the Orinoco Belt, the region that contains most of Venezuela's vast reserves of extra-heavy crude oil. Chevron plans to increase production in the country to 600,000 barrels per day by 2031 compared with about 280,000 bpd currently.
Chevron, through joint ventures with state-owned oil company Petróleos de Venezuela SA, or PDVSA, is the only U.S. oil major active in Venezuela. CEO Mike Wirth told CNBC that Venezuela has become more attractive for investment since the interim government passed a new hydrocarbon law that changed taxes, royalties and other conditions.
The changes have "taken this from not being very competitive within our set of alternatives to something that's very competitive versus our options around the world, which is why we're willing to commit significant capital and grow the way we are," Wirth told CNBC's Brian Sullivan in Caracas.
Chevron's announcement comes as the U.S. government pushes to increase oil production in Venezuela through private investment. The country's oil infrastructure is in a state of disrepair after years of mismanagement by its socialist government.
President Donald Trump announced Friday that the U.S. secured majority control over 65 billion barrels of Venezuela's crude oil reserves, about 20% of the 303 billion barrels the country is thought to possess. U.S. Energy Secretary Chris Wright is visiting Venezuela on Wednesday.
Washington has partnered with the private oil company North American Blue Energy Partners to develop those reserves. Venezuela's interim government has given NABEP concessions to 17 oilfields for 100 years. NABEP, in turn, has granted the U.S. Defense Department a 35% equity stake.
The U.S. captured former President Nicolás Maduro in a military raid in January and seized control of Venezuela's oil exports. Washington has partnered with interim President Delcy Rodríguez, the former vice president under Maduro.
Chevron shares were little changed Wednesday after climbing 13% in the past three months and 39% in 2026.
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