Three oil majors deepen footprint in Venezuela

Published: 2026-04-16 05:30:11 ET CVX

Published on 04/16/2026 at 05:30 am EDT

Texas-based Chevron Corp. has agreed to expand its position in Venezuela’s Orinoco Belt through a pair of deals with state oil company PDVSA, sharpening its focus on extra-heavy crude as the country seeks to revive output following sweeping sector reforms, Reuters reported.

The agreements, signed on April 13 in the presence of acting president Delcy Rodríguez, centre on an asset exchange that will lift Chevron’s stake in the Petroindependencia joint venture to 49% from 35.8%, while granting access to the Ayacucho 8 area tied to its flagship Petropiar project. In return, the US producer will relinquish offshore gas holdings, including the Loran field, along with a smaller oil asset.

Chevron described the transaction as “a mutually beneficial agreement to consolidate all parties’ focus on strategic assets in the country,” underscoring a shift toward projects that can be integrated with its existing heavy crude operations.

The move comes amid a broader overhaul of Venezuela’s energy sector, including a $100bn reconstruction plan and a revamped hydrocarbons framework aimed at attracting foreign capital. The changes have opened the door for international operators to expand in one of the world’s largest extra-heavy oil reserves.

Chevron’s joint ventures currently produce about 260,000 barrels a day, roughly a quarter of national output, and executives have indicated production could rise by as much as 50% within two years.

Officials say the latest agreements will help “progress to increase output and secure revenue for the benefit of the people,” Rodríguez said.

This comes as ConocoPhillips sends specialists to Venezuela to assess oil and gas opportunities, marking a tentative step toward re-engagement in a country it exited nearly 20 years ago after the nationalisation of its private assets, EFE reported.

“We are analysing Venezuela along with other international opportunities within our disciplined investment framework,” a company spokesperson said.

The move follows a similar initiative by ExxonMobil, which has also dispatched a team to evaluate the possibility of resuming crude production. Both companies are revisiting Venezuela after a period of political upheaval and policy shifts this year aimed at attracting foreign investment.

The country’s vast resource base—estimated at about 303bn barrels of proven crude, or roughly 17% of global reserves—continues to draw interest despite lingering risks.

Senior executives have, however, signalled caution over any potential return. ExxonMobil Chief Executive Darren Woods has said a comeback would depend on the country achieving stability and moving toward a representative political system. ConocoPhillips CEO Ryan Lance has also stressed the need for Venezuela to “completely recalibrate” its tax framework to attract fresh investment.

Outstanding financial disputes remain a major obstacle. Venezuela owes ConocoPhillips about $12bn, largely tied to an arbitration award issued in 2012 over what was described as the “unlawful expropriation” of its assets, complicating the outlook for renewed operations.

For its part, Spain’s Repsol will soon take direct control of its oil operations, a move aimed at accelerating production growth and meeting its target of tripling output in the country over the next three years, CEO Josu Jon Imaz said on April 13, Efecto Cocuyo reported.

Speaking at the “Wake Up, Spain!” event, Imaz said the shift marks a turning point for the company’s presence in Venezuela, adding that “the time has come for a better Venezuela.” He stressed that companies operating in the country must expand output and contribute more taxes so the nation “has the resources for its development.”

Taking operational control is expected to enable Repsol to increase its gross oil production by more than 50% in the near term, while supporting longer-term expansion plans. The company also pointed to a recent “significant agreement” to boost gas production, which is expected to underpin about 50% of Venezuela’s electricity generation at a time of heightened demand.

Imaz highlighted what he described as “absolute support” from the US government, noting the company has secured all necessary licences to operate under current conditions, including the ability to transact in dollars and work with US firms.