Venezuela expands Chevron operations in Orinoco Belt following hydrocarbon reform
The agreement is part of an asset restructuring in which Chevron is prioritizing its presence in extra-heavy crude while returning a marine gas field to the Venezuelan state
Venezuela’s government on Monday signed an agreement expanding US oil company Chevron’s operations in the country, weeks after a hydrocarbon reform opened the sector to private and foreign investment. The signing ceremony took place at the Miraflores presidential palace in Caracas.
The deal raises Chevron’s stake in the Petroindependencia joint venture to 49% and grants it rights for primary activities in the Ayacucho 8 block as part of the Petropiar joint venture, according to Chevron representative Javier La Rosa, who spoke at the event. Both projects are located in the Orinoco Oil Belt, home to the world’s largest proven crude reserves.
The agreement is part of an asset restructuring in which Chevron is prioritizing its presence in extra-heavy crude while returning a marine gas field to the Venezuelan state, according to Reuters. Separately, Shell is reportedly close to signing a deal to operate the Loran gas field in waters near Trinidad and Tobago.
Venezuelan oil production has shown signs of recovery, rising 7.24% between February and March — from 1,021,000 to 1,095,000 barrels per day. In February, US Energy Secretary Chris Wright visited Chevron’s facilities in the Orinoco Belt and projected the company could reach 300,000 barrels per day.
The expansion comes amid a broader rapprochement between Washington and Caracas following the capture of former President Nicolás Maduro in January. President Donald Trump called Venezuela a new friend and partner in energy during his State of the Union address in March.
