Seven billion dollars from Chevron, drilling starting Thursday for Eni and a plan to rebuild the entire electricity grid. A new chapter is opening for Venezuela ‘s energy sector as Chevron , Eni and GE Vernova announced a series of major deals aimed at boosting oil and gas production and restoring the country’s troubled energy infrastructure.
The agreements were presented at a ceremony in Caracas , in the presence of US Energy Secretary Chris Wright and Venezuelan acting President Delcy Rodriguez .
According to Wright, these are investments of “tens of billions” of dollars, which mark a transformation for the country. Rodriguez described the agreements as historic and estimated that they will soon lead to a boost in economic growth, while thanking US President Donald Trump for his efforts to reach agreements that, as he said, will benefit both sides.
This is the largest infusion of capital from major energy companies into Venezuela since the ouster of Nicolas Maduro in January. The Trump administration is now seeking to drastically accelerate hydrocarbon production in a country that has the world’s largest proven oil reserves . “We are hugely interested in expanding energy production in the Americas. This is our neighborhood,” Wright said.
The largest financial commitment so far was made by Chevron , which plans to invest $7 billion over the next five years, aiming to more than double its production. The American giant secured the rights to develop two huge fields, Carabobo 1 and Carabobo-2-South-A , in the rich Orinoco oil belt, next to the Petroindependencia consortium in which it holds a 49% stake. “We are building an extremely strong position in what we believe are some of the best geological fields in the country,” said CEO Mike Wirth , referring to resources equivalent to several billion barrels.
The numbers explain the interest. Chevron estimates that by 2031 it will produce about 600,000 barrels per day in Venezuela, more than doubling current levels. The additional production of about 300,000 barrels alone corresponds to an increase of almost 30% on the country’s current total production, which is close to 1.1 million barrels. The most critical element, however, is the cost . According to the company, the total cost of production is expected to be below $20 per barrel . With Brent near $95, the profit margins are potentially huge.
Italy’s Eni is also planning a strong comeback. Chief Executive Officer Claudio Descalzi announced that drilling in the Junin 5 field will begin on Thursday, speaking of “huge potential,” as the block is estimated to hold more than 35 trillion cubic feet of natural gas . The company signed a 25-year contract that makes it the sole operator of the field, while the detailed development plan is expected in October.
The deals are not limited to hydrocarbons. US-based GE Vernova has committed to a strategic partnership with state-owned oil company PDVSA to restore and strengthen electricity and energy infrastructure, while a separate agreement was signed with state-owned electricity company Corpoelec . The move addresses a long-standing problem, as weaknesses in the country’s electricity system have repeatedly caused widespread blackouts.
Behind the corporate announcements, Washington’s new energy strategy is clearly visible, which seeks not only to increase production but also to strengthen American control over new flows. Earlier this week, the US government negotiated the acquisition of a 35% stake in North American Blue Energy Partners , a private company that has received 100-year concessions to 17 Venezuelan oil fields . Chris Wright also said that efforts are underway to restructure the country’s huge debt , making it clear that the proceeds from the new fields should be used to benefit Venezuela, the US and international markets.
One point, however, needs to be careful not to create excessive expectations. Despite the size of the investments, the new production cannot act as a direct counterweight to the disruptions in oil flows from the Strait of Hormuz . Mike Wirth clarified that the additional supply will enter the market gradually. “These operate on different time cycles,” he stressed. “The investments here in Venezuela will take years.”
Moreover, even with the planned increase, the country is far from its historic levels. In the late 1990s, it pumped almost 3.5 million barrels per day , compared to about 1.1 million today. However, the return of companies with the financial and technical strength of Chevron and Eni is creating the conditions for a substantial recovery in the oil sector for the first time in years.
