Chevron is close to finalizing agreements that would significantly expand its oil operations in Venezuela, potentially adding two new heavy-oil fields to its portfolio. Shares of Chevron (CVX) rose 1.05% on the news.

The deal is expected to be announced Wednesday in Caracas, where executives from several U.S. oil and gas companies are set to sign production agreements. Energy Secretary Chris Wright is also expected to travel to Venezuela for the occasion.

Details of the Agreement

The arrangement would migrate Chevron's existing joint ventures—currently three partnerships with state-run PDVSA—into Venezuela's new energy framework, giving the U.S. major greater control over operations. The deal also includes a previously agreed asset swap allowing Chevron's Petropiar heavy crude project to expand into the neighboring Ayacucho 8 block.

BREAKING: Chevron, $CVX , Haliburton, $HAL , and other major US oil companies are nearing deals to invest "billions of dollars" in Venezuela's oil fields, per WSJ. This comes amid reports that the US is negotiating a deal to take a large stake in Venezuelan oil fields. — The Kobeissi Letter (@KobeissiLetter) August 28, 2026

A second area in the Orinoco Belt is also part of the negotiations, along with a potential new oil area that could be added to Chevron's portfolio, according to sources. Chevron declined to comment. The Orinoco Belt, home to the Ayacucho and Petropiar operations, is the heart of Venezuela's heavy-oil resources and the focal point of the country's efforts to revive output.

Halliburton, one of the largest U.S. oilfield services firms, is also in active talks to bring its equipment and services to Venezuelan oil producers. The involvement of a major services company matters because Venezuelan fields have suffered from years of underinvestment and deteriorating equipment, making outside services capacity a key requirement for restoring production.

What's Driving the Push

Since the ouster of Nicolas Maduro in January, President Trump has pushed U.S. energy companies to invest in Venezuela in order to shore up Western Hemisphere oil output and secure more heavy crude for American refineries. U.S. Gulf Coast refineries are configured to process heavy crude, and have increasingly relied on imports from Canada and Mexico to fill that role—making additional Western Hemisphere heavy supply strategically significant.

Venezuela holds some of the world's largest proven crude oil reserves, accounting for roughly 17% of the global total. The country is currently pumping about 1.1 million barrels per day, roughly flat with last year—a fraction of the more than 3 million barrels per day it produced in the late 1990s before years of sanctions, underinvestment, and operational decline.

Chevron has been the only major U.S. oil company operating in Venezuela, doing so under a special U.S. government license that allowed it to keep producing and exporting Venezuelan crude even while broader U.S. sanctions remained in place. That established presence gives it an edge over rivals still weighing whether to enter the market.

Rivals Stay on the Sidelines

ExxonMobil and ConocoPhillips are not participating for now. Both companies had their Venezuelan assets nationalized by Hugo Chavez in 2007 and are still seeking billions of dollars in restitution nearly two decades later—a history that illustrates the political and legal risk that has long hung over foreign investment in the country.

Many of the fields Venezuela is offering are greenfields, lacking basic infrastructure or electricity. Turning them into producing assets would require billions in upfront investment, meaning any production gains would take years rather than months to materialize.

Hunt Oil became the first U.S. company to sign a deal to pump Venezuelan oil earlier this month, ahead of the broader wave of agreements now taking shape.

The talks among companies are separate from advanced discussions between the Trump administration and Venezuela over the U.S. taking a direct stake in 17 of the country's most promising fields, which hold around 90 billion barrels of proven reserves. How those parallel negotiations conclude is likely to shape the broader framework for foreign investment in Venezuela's oil sector going forward.

At the end of Q2 2026, Chevron was the energy stock with the most hedge fund holders in the Insider Monkey database, with 101 funds holding a combined stake of around $23.2 billion.