Chevron Plans 50 Percent Output Boost in Venezuela by 2028
VENEZUELA · ENERGY
Key Facts
—The headline: Chevron projects Chevron Venezuela production will rise from around 50,000 barrels per day to roughly 250,000 by the end of 2028, a 50 percent expansion of the company’s regional footprint.
—The framework: Chevron operates four joint ventures with state oil company PDVSA producing 240,000 to 250,000 barrels per day of heavy crude under OFAC General License 49, which Treasury issued on February 13, 2026.
—On the record: CEO Mike Wirth and refining vice president Mark Nelson confirmed the trajectory in May 28 corporate communications, citing legal and contractual guarantees as the conditioning factor.
—The political backdrop: The expansion follows the change of government in Caracas, with interim president Delcy Rodríguez and US energy secretary Chris Wright visiting Faja Petrolífera del Orinoco fields in February.
—Latin American impact: Higher Venezuelan output reshapes global heavy-crude markets and pressures Mexican and Colombian regional flows.
Chevron Venezuela production is set for a sharp expansion. The US oil major said on Thursday it plans to raise output from its Venezuelan joint ventures by roughly 50 percent before the end of 2028. The decision marks a corporate vote of confidence in the post-Maduro framework that Washington and Caracas have built around General License 49.
What Chevron’s Chevron Venezuela production plan actually says
The headline target is to lift production from roughly 50,000 barrels per day to about 250,000 barrels per day by year-end 2028. The 250,000 number is a Chevron-equity share figure, not gross joint-venture output. CEO Mike Wirth told investors the company is now positioning equipment and personnel against that target.
Chevron currently runs four joint ventures with PDVSA, including Petropiar, Petroindependiente, Petroindependencia and Petroboscán. Together these blocks deliver 240,000 to 250,000 barrels per day of heavy and extra-heavy crude. Production is concentrated in the Orinoco belt and in the Lake Maracaibo basin.
The current near-term goal is 300,000 barrels per day of US-bound exports. Refining vice president Mark Nelson said in earlier corporate communications that the company could double its Venezuelan loadings on short notice and lift production half again over two years.
Why Chevron Venezuela production can scale now
The US Treasury’s Office of Foreign Assets Control issued General License 49 and a follow-up General License 50 on February 13, 2026. Director Bradley Smith signed the orders. The new licenses authorize a defined set of upstream and export activities for established US entities operating in Venezuela.
The legal architecture replaced the more constrained General License 41 regime that had governed Chevron operations under the Maduro government. The new framework requires US-law-governed contracts and US-court dispute resolution. It blocks any direct payment to sanctioned individuals.
Chevron is currently the only US major operating in Venezuela. BP, Shell, Eni and Repsol have also resumed limited activities under similar authorizations. ExxonMobil is in separate negotiations with Caracas, according to a New York Times report from earlier this year.
The Faja Petrolífera del Orinoco is the prize
The Orinoco oil belt covers 55,314 square kilometers across the states of Guárico, Anzoátegui, Monagas and Delta Amacuro. PDVSA reports that the belt holds about 87 percent of Venezuelan reserves. It is widely considered the largest crude reserve in the world.
US energy secretary Chris Wright visited the Orinoco fields with interim president Delcy Rodríguez in February, marking the new political relationship. Wright said at the time that Venezuelan oil sales had already topped one billion dollars under the new licenses. He projected that the number could multiply quickly.
Chevron operates in the Orinoco mainly through Petropiar and Petroindependencia. Together with Petropiar’s upgrader at Jose, the assets give the company integrated upstream and synthetic-crude capability. The complex is a strategic anchor for the 250,000-barrel target.
Heavy-crude markets and Chevron Venezuela production
US Gulf Coast refineries are configured to process heavy and extra-heavy crude. The shift since 2014 toward lighter US shale output has left Gulf complexes short of suitable feedstock. Venezuelan crude is a natural fit for those configurations.
Chevron exported about 100,000 barrels per day from Venezuela in December 2025 and roughly 150,000 in November. The number rose to about 230,000 in January 2026 once a temporary US blockade lifted. The first-quarter 2026 trajectory was already running ahead of all prior periods under General License 41.
Repsol of Spain, Eni of Italy and BP have also moved cargoes under the new authorizations. China’s Concord Resources Corp announced plans to invest more than one billion dollars in two fields. China National Petroleum Corp and Sinopec retain stakes in PDVSA joint ventures.
Regional read on Chevron Venezuela production
Higher Venezuelan exports reshape regional crude flows. Mexican Maya, the heavy-crude benchmark in the Western Hemisphere, faces direct competition from Venezuelan equivalents. Colombian Vasconia and Castilla blends also compete for the same Gulf Coast refinery slots.
The Brazilian outlook is more mixed. Petrobras‘s pre-salt grades are lighter and rarely compete head-on with Venezuelan heavy.
Brazilian refiners do, however, benefit from cheaper imports of heavy feedstock when Venezuelan supply rises. Brazilian export volumes to the United States face stiffer competition.
The longer arc is a partial reentry of Venezuela into global oil markets after almost a decade of sanctions-driven decline. The country was producing around 3 million barrels per day in 2013 and below 700,000 in late 2020. The new trajectory points back toward 1.2 million if all majors participate.
Frequently Asked Questions
How much does Chevron currently produce in Venezuela?
Chevron’s four PDVSA joint ventures produce a combined 240,000 to 250,000 barrels per day of heavy crude. The company’s equity share within that total sits at roughly 50,000 barrels per day. The 2028 target lifts that equity figure to about 250,000 barrels per day.
What are General Licenses 49 and 50?
They are sanctions-relief authorizations issued by the US Treasury Office of Foreign Assets Control on February 13, 2026. Director Bradley Smith signed them. They allow defined upstream and export activities for established US entities operating in Venezuela.
Who else is operating in Venezuela under the new framework?
BP of the United Kingdom, Shell of the United Kingdom, Eni of Italy and Repsol of Spain have resumed activity. ExxonMobil is in separate negotiations. China’s CNPC, Sinopec and Concord Resources retain or are expanding stakes in Venezuelan joint ventures.
Where is Chevron production concentrated?
The bulk of Chevron’s Venezuelan output comes from Faja Petrolífera del Orinoco fields and from Lake Maracaibo basin assets. The Orinoco belt holds about 87 percent of Venezuelan reserves and remains one of the largest heavy-crude provinces in the world.
What conditions could delay the 2028 target?
Wirth has flagged contractual and legal guarantees as the key conditioning factors. A change in US administration, an unexpected sanctions reversal or instability in Caracas could each disrupt the plan. Heavy-crude price weakness would also slow the capital-spending pace.
Connected Coverage
For the political backdrop see our piece on Delcy Rodríguez and the Venezuela oil reopening. Also read our analysis of the US-Venezuela prosecutorial warming and Milei’s growth message to investors.
The Rio Times — Friday, May 29, 2026 — 03:00 BRT — By Sofia Gabriela Martinez
Read More from The Rio Times