Chevron plans to invest over $7 billion through its joint ventures in Venezuela to more than double its crude oil output to about 600,000 barrels per day within the next five years. This significant financial commitment represents the largest investment to date in a U.S. government-backed initiative aimed at revitalizing Venezuela's oil industry, which has suffered from underinvestment and sanctions.
The investment will primarily target the development of two substantial oil fields, Carabobo 1 and Carabobo-2-South-A, located in the prolific Orinoco Belt. These fields are adjacent to Chevron's existing Petroindependencia joint venture, where the company holds a 49% stake. This expansion comes as Venezuela seeks to rebuild its oil sector, and despite prior calls from the Trump administration for U.S. oil companies to boost production in the country.
Separately, Chevron announced its overall capital expenditure budget for 2026, ranging from $18 billion to $19 billion for consolidated subsidiaries. This falls at the lower end of its long-term guidance of $18 billion to $21 billion. Additionally, affiliate capital expenditure is projected to be between $1.3 billion and $1.7 billion for the same year. More than half of the 2026 capex budget, approximately $10.5 billion, is earmarked for the U.S., with about $6 billion allocated to U.S. shale and tight assets, including the Permian, DJ, and Bakken basins. Global offshore capex is expected to be around $7 billion, supporting growth in regions like Guyana, the Eastern Mediterranean, and the Gulf of America. Approximately $1 billion within the total upstream and downstream budgets is dedicated to reducing operational carbon intensity and expanding new energy ventures.
