The Venezuelan government signed an agreement on Monday to expand Chevron's operations in the country, aiming to ramp up national oil production. The deal follows recent hydrocarbon reforms designed to open the energy sector to private and foreign investment.
During a ceremony at the Miraflores presidential palace in Caracas, the agreement increased Chevron's stake in the joint venture Petroindependencia to 49%. The contract also grants the US company rights for primary activities in the Ayacucho 8 block.
Ayacucho 8 is located within the Orinoco Oil Belt, the world's largest deposit of extra-heavy crude. The expansion is part of the broader Petropiar operations, a joint venture between Chevron and the state-owned Petróleos de Venezuela (PDVSA).
Chevron swaps gas assets for crude rights
As part of the negotiation, Chevron agreed to relinquish its shares in two offshore gas fields, located in Macuira and Loran. The company also surrendered its interests in the Petroindependiente crude field in Lake Maracaibo, according to a company statement.
Javier La Rosa, a representative for Chevron, noted that the company's operations in three joint ventures currently account for the majority of Venezuela's oil production. He stated that the recent hydrocarbon reform will allow Chevron to accelerate the development of its assets.
"We appreciate the great collaboration between the Venezuelan Government and the American Government," La Rosa said during the event, which was broadcast on state television.
Acting President Delcy Rodríguez described the agreement as the result of several days of negotiations. She stated that the new regulatory framework provides a legal path for secure investments in Venezuela.
Rodríguez, who assumed office following the arrest of Nicolás Maduro in January, said the deal aims to advance production levels. She added that revenues from these operations will go directly toward a shared benefit between both nations.
"We must move toward a Venezuela without sanctions," Rodríguez told US Chargé d'Affaires Laura Dogu. She emphasized that a stable legal environment is necessary to ensure that foreign investment is not merely temporary.
The signing involved high-ranking officials, including PDVSA President Hector Obregón and Chevron Venezuela President Mariano Vela. US officials, including Deputy Assistant Secretary Kyle Haustveit, were also in attendance.