Venezuela’s oil comeback lures majors into a $100 billion rebuild

Venezuela is attracting renewed interest from global oil majors after sweeping reforms opened its energy sector, but rebuilding its corroded infrastructure will require more than $100 billion (approx. R 1,7 trillion) and at least a decade, OilPrice.com reported. 

Chevron, ExxonMobil, Repsol, and Eni are expanding or negotiating new ventures, betting on the country’s vast reserves despite lingering risks.

Venezuela’s oil revival

OilPrice.com’s Matthew Smith wrote that Venezuela enacted major reforms in early 2026, ending PDVSA’s monopoly and reducing royalties and taxes to lure foreign investment. 

The changes came after Washington’s removal of Nicolás Maduro in January and the installation of Delcy Rodríguez, who has prioritised oil output.

Production has already rebounded. According to OPEC data cited in the report, Venezuela pumped 1.179 million barrels per day in May 2026, up 3.8% from April and 10.6% year‑on‑year.

This marks the highest monthly output in years, signaling momentum for recovery.

Chevron expands footprint

Chevron, which never fully exited Venezuela, has leveraged its early‑mover advantage. In April 2026, it expanded its stake in the Petroindependencia joint venture to 49% and secured rights to develop Ayacucho 8 in the Orinoco Belt. 

The company aims to grow production by 50% within 18–24 months, lifting output to 375,000 barrels per day.

Chevron’s assets currently produce around 250,000 barrels daily, mostly extra‑heavy crude suited for US Gulf Coast refineries. 

The expansion is expected to significantly boost cash flow, reinforcing Chevron’s position as a leading player in Venezuela’s oil revival.

ExxonMobil reconsiders return

ExxonMobil, which lost $1,6 billion (approx. R 27,4 billion) when Hugo Chávez expropriated its Cerro Negro project in 2007, had long deemed Venezuela “uninvestable.” CEO Darren Woods said earlier this year: 

“If we look at the legal and commercial constructs and frameworks in place today in Venezuela, it’s uninvestable.”

Yet reforms have shifted the calculus. Exxon is now in talks to acquire rights to six Venezuelan oilfields, a dramatic turnaround given its success in Guyana’s Stabroek Block.

European majors stay engaged

Spain’s Repsol and Italy’s Eni, which maintained operations despite hostile conditions, are also expanding. 

Repsol produces about 45,000 barrels of oil equivalent daily and recently signed agreements to incorporate the Horcón oilfield and expand its Petroquiriquire joint venture. 

Eni, with stakes in the La Perla gas project and Junin‑5 heavy oil block, pumps around 64,000 barrels per day and is negotiating further investments.

Enormous challenges remain

Despite rising output, Venezuela’s infrastructure is in ruins. Wellheads, pipelines, and storage tanks are so corroded that many facilities are inoperable, causing widespread environmental damage. 

Rebuilding could cost $100–220 billion and take more than a decade. Corruption, malfeasance, and debt recovery obligations also weigh heavily. 

Foreign investors remain cautious, wary of Venezuela’s history of expropriation and regulatory instability.

Outlook

With 303 billion barrels of proven reserves, Venezuela holds the world’s largest exploitable oil resources, mostly in the Orinoco Belt. 

If reforms hold and investment flows, production could reach 1.5 million barrels per day by 2027, OilPrice.com reported. 

Elevated oil prices would accelerate recovery, but the scale of infrastructure decay and environmental liabilities means progress will be slow.

Smith concluded that Venezuela, alongside Guyana and Brazil, is poised to become a key player in South America’s export‑led oil boom. 

Yet the race to revive its vast oil wealth will test the resilience of foreign investors and the durability of reforms.