Chevron Corp. (CVX:NYSE; CVX:TSX) announced agreements with Venezuela establishing updated terms for its joint ventures in the country, including provisions covering fiscal, commercial, and legal terms and the assignment of additional acreage in the Orinoco Belt.
The agreements support joint venture plans to invest more than US$7 billion over the next five years and more than double production to approximately 600,000 barrels per day compared with 2026. Chevron said total costs are less than US$20 per barrel.
"Chevron's history in Venezuela spans more than a century, and our expanded position reflects our confidence in the country's deep resource potential and its ability to compete for investment within our portfolio for decades," Chevron Chairman and Chief Executive Officer Mike Wirth said. "With improved terms and additional acreage, we are strengthening a portfolio that we believe can deliver attractive low-cost oil growth, support energy supply, and create differentiated long-term value. This progress reflects the dedication of our Venezuelan employees and our long-standing focus on the responsible development of the country's resources."
Under the agreements, Petroindependencia, S.A., in which a Chevron subsidiary holds a 49% interest, was assigned rights to develop the adjacent Carabobo 1 and Carabobo-2-South-A areas in Venezuela's Orinoco Belt. The greenfield sites expand the joint venture's existing operational footprint, where extra-heavy oil production is increasing.
The agreements follow an April agreement under which Chevron increased its working interest in Petroindependencia to 49%, while its Petropiar, S.A. joint venture was assigned the rights to develop the adjacent Ayacucho 8 area. Chevron said its three Venezuelan joint ventures collectively increased production by 15% year-to-date.
"We appreciate the leadership of the Administration, particularly the U.S. Department of Energy, and Secretary Wright's partnership in helping facilitate the conditions for further investment and growth," Wirth said. "Continued engagement between government and industry is essential to advancing projects that support energy security, economic growth, and continued investment."
Chevron's presence in Venezuela dates to 1923. Its Petroindependencia and Petropiar, S.A. joint ventures operate extra-heavy oil projects in the Orinoco Oil Belt, while Petroboscan, S.A. is located in Zulia State in western Venezuela.
Project Pipeline Spans Upstream, Chemicals, and New Energies
Chevron's August 2026 investor presentation outlined capital expenditure guidance of US$18 billion to US$21 billion per year through 2030, along with affiliate capital expenditure guidance of US$1 billion to US$2 billion from 2026 through 2030. The presentation also listed production guidance of 2% to 3% compound annual growth and an approximately 10% average improvement in upstream cash margin.
In the Permian, Chevron outlined a long-term production plateau with an option to grow and approximately US$5 billion in annual free cash flow through 2030. The presentation identified more than 3,100 net inventory locations with PV-10 breakevens below US$50 per barrel and more than 2,300 locations in the US$50 to US$70 range through 2040. Chevron also said new-well advanced chemical treatments were being scaled to 100% of company-operated Permian wells, while treatments were being piloted across its broader shale and tight portfolio.
Across the DJ Basin, Bakken, and Argentina, the presentation projected a combined annual free cash flow of approximately US$2 billion through 2035. Chevron projected production in Argentina to grow by more than three times by 2035, with the Argentina portfolio described as approximately 75% oil weighted. The DJ Basin was listed with approximately 75% of inventory below a US$50 per barrel breakeven.
In Guyana, the presentation identified more than 30 major discoveries and more than 11 billion barrels of oil equivalent of gross resource. Uaru was listed in execution with a start-up scheduled for 2026, Whiptail was in execution with a start-up scheduled for 2027, and Hammerhead was in execution with a start-up scheduled for 2029. Longtail was in front-end engineering design, with a final investment decision targeted for 2026. Chevron also stated that free cash flow growth from Guyana was expected beyond 2030.
In the Eastern Mediterranean, Chevron reported that the Tamar Optimization Project and Leviathan additional capacity project had achieved first gas, Leviathan expansion had reached a final investment decision, and Aphrodite had entered front-end engineering design. The presentation listed full capacity for both the Leviathan Gathering Line and the Tamar Optimization Project in 2026. Leviathan Expansion Stage 1 was in execution with start-up scheduled for the end of the decade, while Aphrodite was in front-end engineering design with a final investment decision scheduled for 2027.
Chevron also outlined continued activity in the Gulf of America, where it held approximately 1.7 million net acres and planned 10 to 15 exploration wells through 2030. Jack/St. Malo Stage 5 was listed as online, while Ballymore Stage 2 was in pre-front-end engineering design with a final investment decision scheduled for 2027.
In Australia, the Jansz-Io Compression project was in execution with a start-up scheduled for 2028, while Gorgon Stage 3 was in execution with a start-up scheduled for the end of the decade. Chevron's Australian portfolio was also described as containing more than 40 trillion cubic feet of gross natural gas resource, with low-cost backfill projects and a projected average annual free cash flow of US$4 billion to US$5 billion.
West African activity included the Aseng Gas Development in Equatorial Guinea, which had reached a final investment decision and was scheduled for start-up in 2028. YoYo Yolanda, spanning Equatorial Guinea and Cameroon, was in pre-front-end engineering design with a final investment decision scheduled for 2027. Nigeria's OML 89 Obokun project was also in pre-front-end engineering design with a final investment decision scheduled for 2027. Chevron said a 31-well Nigeria joint venture infill drilling program was underway, and 15 exploration and appraisal wells were planned over three years. An exploration well in Namibia was planned for 2026, while Chevron had entered two blocks in Guinea-Bissau.
In chemicals, Chevron said its U.S. Gulf Coast and Qatar projects were more than 95% complete, with start-up anticipated in 2027. The major-project schedule identified the Ras Laffan Petrochemical Project in Qatar and the Golden Triangle Polymers Project in the United States as being in execution, with a start-up scheduled for 2027.
The presentation also outlined several New Energies projects. The Destrehan Oilseed Processing Plant was under construction with a start-up scheduled for 2026. Project Kilby was in front-end engineering design with a final investment decision scheduled for 2026, while Bayou Bend Offshore CO2 Transport and Storage was also in front-end engineering design with a final investment decision scheduled for 2026. The Pascagoula CO2 Capture, Transport and Storage project and Lithium Stage 1 remained in feasibility, with their next milestones listed as to be announced.
Streetwise Ownership Overview*
Chevron Corp. (CVX:NYSE;CVX:TSX)
| Date | Old Symbol | Old Shares | New Symbol | New Shares |
|---|---|---|---|---|
| 08/04/26 | CHEV:TSX | 1 | CVX:TSX | 1 |
| 09/13/04 | CVX:NYSE | 1 | CVX:NYSE | 2 |
Chevron said Project Kilby had a 20-year power purchase agreement with Microsoft Corp. (MSFT:NASDAQ). The presentation described Kilby as a behind-the-meter multi-gigawatt project with a long-term power purchase agreement, with capacity subject to a final investment decision and project schedule.
In another New Energies project, Chevron reported that the ACES hydrogen project had achieved first production and storage. Lithium appraisal wells were planned for 2026, while the company said it was advancing the Bayou Bend and Pascagoula carbon capture and storage projects.
Ownership and Share Structure1
0.48% of Chevron is held by insiders and management, 4.29% by strategic investors, and 71.05% by institutions. The rest is retail.
Its market capitalization was approximately US$422.3 billion with nearly 1.975 billion shares outstanding. It trades in a 52-week range of US$146.49 to US$214.71.
Frequently Asked Questions
What did Chevron announce in Venezuela?
Chevron Corporation announced agreements with Venezuela that established updated terms for its joint ventures in the country. The agreements included enhanced fiscal, commercial, and legal terms and assigned additional acreage in Venezuela's Orinoco Belt.
How much does Chevron plan to invest in Venezuela?
Chevron said its joint venture plans called for more than US$7 billion of investment in Venezuela over the next five years. The investment plans were associated with project development and increased oil production.
How much could Chevron's Venezuela oil production increase?
Chevron said the joint venture plans called for production to more than double to approximately 600,000 barrels per day compared with 2026. The company also reported that its three Venezuelan joint ventures had collectively increased production by 15% year-to-date.
What new oil acreage did Chevron receive in Venezuela's Orinoco Belt?
The Petroindependencia, S.A. joint venture was assigned rights to develop the adjacent Carabobo 1 and Carabobo-2-South-A areas in the Orinoco Belt. Chevron's subsidiary held a 49% interest in Petroindependencia. The greenfield sites expanded the joint venture's existing operational footprint.
What is Chevron's interest in the Petroindependencia joint venture?
Chevron's subsidiary holds a 49% interest in Petroindependencia, S.A. Under an April agreement, Chevron increased its working interest in Petroindependencia to 49%, while its Petropiar, S.A. joint venture was assigned the rights to develop the adjacent Ayacucho 8 area.
What are Chevron's oil production costs in Venezuela?
Chevron said its Venezuela operations had total costs of less than US$20 per barrel. The company described Venezuela as having a large resource base and identified the country as a platform for oil growth under its cash management model.
Which oil projects does Chevron operate in Venezuela?
Chevron's joint ventures, Petroindependencia and Petropiar, S.A., operated extra-heavy oil projects in Venezuela's Orinoco Oil Belt, while Petroboscan, S.A., was located in Zulia State in western Venezuela. Chevron's presence in the country dates back to 1923.
What was happening to oil prices in September?
Oil prices had moved toward US$100 per barrel amid disruptions and heightened supply concerns in the Middle East. On September 8, Oilprice.com reported Brent crude at US$98.70 per barrel during Asian trading, while West Texas Intermediate had reached US$94.12 per barrel.
How had the Strait of Hormuz disruption affected the global oil market?
TheStreet reported on September 8 that the Strait of Hormuz had effectively remained closed after fighting began on February 28. The waterway had carried close to one-fifth of global crude and liquefied natural gas before the fighting, while vessel traffic had subsequently fallen from more than 100 vessels per day to a handful.
What was OPEC+ doing as oil prices approached US$100 per barrel?
According to TheStreet, seven OPEC+ members had kept October production targets unchanged after raising output for six consecutive months. The report said physical transportation constraints had reduced the relationship between production quotas and barrels actually reaching ships and refineries.
What major Chevron oil and gas projects were scheduled through 2030?
Chevron's August investor presentation listed major upstream projects across Guyana, Australia, the Eastern Mediterranean, West Africa, and the U.S. Gulf of America. Among the scheduled milestones were the Uaru start-up in 2026, Whiptail start-up in 2027, Jansz-Io Compression start-up in 2028, and Hammerhead start-up in 2029.
What other energy projects did Chevron identify for 2026 and 2027?
Chevron's project schedule included a 2026 start-up for the Destrehan Oilseed Processing Plant and 2026 final investment decisions for Project Kilby and Bayou Bend Offshore CO2 Transport and Storage. The Ras Laffan Petrochemical Project and Golden Triangle Polymers Project were each listed for start-up in 2027.
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- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
