Venezuelan oil production it enters a new phase of growth driven by Chevron’s expansion and the growing interest of large international companies in the country’s oil and gas resources.
Venezuela retains close to 303 billion barrels of proven oil reserves, equivalent to approximately 17% of the world total. A large part is concentrated in the extra-heavy crude oils of the Orinoco Oil Belt, whose development requires technical capacity for transportation, upgrading, and refining.
In this scenario, Chevron emerges as one of the central players, the US company has increased its production in Venezuela from about 40,000 to 250,000 barrels per day in recent years, according to statements by its financial director, Eimear Bonner.
Chevron aims to produce 420,000 barrels per day in Venezuela
In addition, production associated with the three joint ventures in which Chevron participates reached approximately 280,000 barrels per day, after registering a year-on-year growth of 12% during the last six months.
The oil company recently strengthened its position through an asset swap with PDVSA, acquiring an additional 13.21% of Petroindependencia. This transaction increased its stake in the joint venture to 49%.
Chevron also holds a 30% stake in Petropiar and rights to develop the Ayacucho 8 area of the Orinoco Oil Belt. In addition, it holds a 25.2% non-operating stake in Petroindependiente.
Looking ahead, the company plans to increase its Venezuelan production by another 50% by the end of 2028. If this forecast is met, Chevron could reach approximately 420,000 barrels per day.
Venezuelan oil production reaches 1.21 million bpd
Meanwhile, the combined production of PDVSA and its foreign partners averaged 1.21 million barrels per day in July, after increasing by around 20,000 barrels per day.
The figure shows a recovery compared to previous years, although it is still far from the levels recorded at the beginning of the 2000s, when Venezuela produced more than 3 million barrels per day.
Furthermore, much of the crude oil currently produced is geared towards exports, this growth is putting Venezuela back on the radar of major oil companies thanks to the size of its reserves and the potential of fields that have been operating below capacity for years.
However, sustaining this recovery will require additional investments; infrastructure, fiscal conditions, and the predictability of the regulatory framework remain decisive variables for companies evaluating long-term projects.
Repsol expands its presence alongside PDVSA
On the other hand, Repsol is also preparing a considerable expansion of its operations, the Spanish company is looking to triple its oil production in Venezuela over the next two or three years.
He currently owns 40% of Petroquiriquire Occidente along with PDVSA and produces approximately 45,000 barrels of crude oil per day.
The oil company added the Tomoporo and La Ceiba fields to the scope of the concession, and also signed a memorandum of understanding to evaluate the development of the Horcón Area, southeast of Lake Maracaibo.
The project connects the Barúa and Motatán fields and could facilitate access to new light crude reserves, expanding Repsol’s production base in western Venezuela.
Natural gas attracts Repsol, Eni and BP
Meanwhile, Venezuela’s energy recovery extends to natural gas, with Repsol and Eni making progress with the Ministry of Hydrocarbons in a project linked to the Cardón IV asset of the Perla marine field.
This development is especially important for the domestic market because it currently supplies around 30% of Venezuela’s gas demand.
BP also expanded its presence by establishing a permanent office in Caracas and obtaining a license to explore and develop Phase 2 of the Loran offshore gas field.
The British oil company will be the main operator of the project along with XRG and UCC Holding, the Loran Phase 2 block would have around 4 trillion cubic feet of recoverable natural gas and is geologically connected to the Manatee/Manakin fields of Trinidad.
According to the plans outlined for the project, the gas could be transported to Trinidad for processing and subsequent export as liquefied natural gas.
Investment will be key to sustaining the oil recovery
Despite the progress made by major operators, increasing Venezuelan oil production faces structural obstacles. These include the need for capital, fiscal conditions, and regulatory uncertainty for projects requiring long-term investments.
Therefore, the recovery will depend both on adding new barrels and on creating conditions that allow Chevron to maintain its investments, Repsol and other international operators.
With 1.21 million barrels per day of production with large reserves still available and expanding oil and gas projects, Venezuela is beginning to regain capacity within the regional energy market. The pace of that growth will now depend on how much capital flows into the sector and the ability of PDVSA and its partners to transform new projects into sustained production.
Source: Oil Price
Photo: Shutterstock
