Chevron sees 50% growth in Venezuela oil production by end of 2028: CFO

Chevron Corp. expects to increase its crude oil production in Venezuela by as much as 50% by late 2028, even as it is in talks with the government to improve existing fiscal terms, CFO Eimear Bonner said July 31.

"We've grown production over the last few years from 40,000 [b/d] to 250,000 [b/d]," Bonner said on the company's second-quarter earnings webcast. "With the existing model that we have in place, we have grown the production from those three JVs, 15% over the last 6 months to 280,000 b/d, and we're anticipating that we will be able to grow up to 50% between now and the end of 2028."

Chevron increased its heavy oil footprint in Venezuela with an asset swap agreement with PDVSA under which it received an additional 13.21% interest in the Petroindependencia joint venture, increasing its total stake to 49%, it said mid-April.

The two other JVs are: Petropiar, in which Chevron's subsidiary holds a 30% interest and has the rights to develop the adjacent Ayacucho 8 area in the Orinoco Oil Belt of Venezuela; and its 25.2% non-operated interest in the Petroindependiente JV in western Venezuela.

In July, average production by Venezuelan state oil company PDVSA and its foreign partners, including Production and Participation Contracts, rose to 1.21 million b/d, up 20,000 b/d from 1.19 million b/d in June, according to preliminary data from the Ministry of Hydrocarbons reviewed by Platts, part of S&P Global Energy.

"On debt recovery, we are continuing to recover our debt. We expect that by early 2027, that will be fully recovered," Bonner said.

She described Chevron's operations in Venezuela as "going well and consistent with what we had communicated."

"With regards to the opportunities, obviously, we've been in Venezuela for 100 years. We stayed there because of the potential in the country and the assets. We love the assets [and the] heavy oil that's there. We have a lot of experience in this space. So, we are actively working with the government to look at other opportunities," Bonner said.

Bonner did not disclose details of the fiscal terms being negotiated, stating: "They have to be competitive, and they have to compete in our portfolio for capital."