CVX · Earnings call · 2026Q3T · Full report

Venezuela Upstream Expansion

CHEVRON CORP · 2026-10-30 · Importance 83 · Surprise 82 · In source text

Chevron said new fiscal terms made Venezuela more competitive in its portfolio and immediately accretive and free-cash-flow positive. The company planned to double production from its three joint ventures to roughly 600,000 barrels per day by 2031, from around 300,000 gross barrels per day targeted by year-end 2026. Management said the program would be self-funding, with total costs below $20 per barrel and no major infrastructure upgrades expected; investment as production expands would mainly be small capital. Chevron markets 100% of the ventures’ crude, most of which goes to U.S. refineries including Pascagoula and El Segundo.

Key facts

• Chevron plans to double production from its three Venezuela joint ventures to roughly 600,000 bpd by 2031, using primary recovery.
• Chevron's new Venezuela fiscal terms make the business more competitive within its portfolio, immediately accretive, and free-cash-flow positive.
• Chevron's Venezuela development program is expected to be self-funding and could extend into the 2030s, supported by billions of barrels of resource.
• Chevron was on track to reach around 300,000 bpd of gross Venezuela production by year-end, up 20% over the prior 12 months.
• Chevron expanded its acreage and established new fiscal terms in Venezuela.
• Chevron expects total Venezuela costs below $20 per barrel, with competitive investment returns and no need for major upgrades because infrastructure has been well maintained.
• Chevron markets 100% of crude from its three Venezuela ventures, with most going to U.S. refineries including Pascagoula and El Segundo.
• Chevron's third-quarter production was nearly 4 MMbpd, including one month of production from Venezuela joint ventures after the change to equity accounting.

Impact estimates