Chevron announced on Wednesday that it has secured revised agreements with Venezuela for its collaborative ventures in the country and will deploy more than $7 billion over the next five years. Chevron Corporation (CVX) shares rose 0.42% in trading.

The plan is aimed at increasing Venezuelan crude output to about 600,000 barrels per day, roughly double current production levels. Chevron said total production costs are expected to remain below $20 per barrel, underscoring the economics behind expanding output in an industry where capital access, infrastructure, and operating terms remain central considerations.

The updated agreements expand Chevron’s Petroindependencia joint venture to include two neighboring areas in the Carabobo section of Venezuela’s Orinoco Belt. Chevron currently operates three partnership ventures in the country: Petroindependencia and Petropiar in the Orinoco Belt, and Petroboscan in western Zulia state.

Chevron Chief Executive Mike Wirth said the expansion reflects confidence in Venezuela’s oil reserves. “Chevron’s engagement in Venezuela extends beyond a century, and our broadened footprint demonstrates our trust in the nation’s substantial resource capabilities and its capacity to attract investment within our holdings for generations to come,” Wirth said.

Chevron has operated in Venezuela since 1923, making it one of the few U.S. oil companies to maintain an uninterrupted presence in the country. ExxonMobil and ConocoPhillips both exited in 2007 after asset nationalization under Hugo Chavez and have not returned.

Background of the Agreement

The announcement came days after President Trump disclosed an arrangement granting the U.S. controlling interest over about 65 billion barrels of Venezuelan oil reserves. Chevron’s expansion is separate from that arrangement, but it aligns with the broader effort to revive Venezuela’s oil industry.

Venezuela holds the world’s largest oil reserves, yet it currently produces only about 1.25 million barrels per day. That is down sharply from more than 3 million barrels per day two decades ago, following years of operational failures at state-run PDVSA.

U.S. Energy Secretary Chris Wright, who arrived in Caracas late Tuesday, expects Venezuela’s total oil production to reach 2 million barrels per day before the end of the decade. Wright and Venezuela’s oil minister Paula Henao are scheduled to witness the signing of several energy contracts.

Wirth said the infrastructure needed for the expansion is already in place. “Our capacity to expand economically is substantially different compared to entering an undeveloped region lacking roads, lacking water systems, lacking electrical power,” he told CNBC.

Additional Companies Entering the Market

Chevron is not the only company finalizing agreements. Energy producer ENI, investment firm KEO Capital, and energy company Primavera, co-founded by billionaire Fred Ehrsam, are among the entities expected to sign energy contracts in Venezuela, potentially as early as Wednesday.

Most of these agreements involve operational expansions negotiated as part of a broader oil restructuring approved in January, after former President Nicolas Maduro left power.

Chevron said the revised agreements include improved fiscal, commercial, and regulatory terms to support long-term capital investment. Across its three Venezuelan joint ventures, the company has already increased production by 15% this year.