Despite President Donald Trump‘s call for increased investment in Venezuela, Chevron Corporation (NYSE:CVX) has decided to maintain its current level of capital spending in the country, the U.S. oil major’s finance chief told the Financial Times on Friday.
Chevron Continues To Engage With The Administration
Eimear Bonner said the company will not be increasing its capital spending in Venezuela this year. Bonner added that the company is currently producing 250,000 barrels a day and saw the potential to grow that by up to 50% over the next 18 to 24 months as they received additional U.S. government authorizations.
She said there was no change to their capital guidance for the year with Venezuela. Chevron’s capital expenditure for 2026 was previously estimated to be between $18 billion and $19 billion.
Meanwhile, CEO Mike Wirth stated on Friday that Chevron would continue to engage with the U.S. and Venezuelan governments to advance shared energy goals, citing the company’s centuries-old link to the Latin American country.
Chevron is the only American oil major currently operating in Venezuela.
The Houston, Texas-based firm’s fourth-quarter profits fell but came in ahead of Wall Street estimates on Friday. Chevron’s adjusted earnings for the three months ended December 31 were $1.52 per share, down from $2.06 a year before. Analysts expected Chevron to report an EPS of $1.45. Revenue fell 10% year over year to $46.87 billion.
Non-U.S. Entities First To Secure Venezuelan Business
Chevron’s move comes amid a renewed interest in Venezuela’s oil industry following the ousting of former President Nicolás Maduro. The Trump administration’s actions have led to a potential shift in the market dynamics, with major oil companies like Chevron and Exxon Mobil Corporation (NYSE:XOM) evaluating their investment prospects in the country.
However, despite Trump’s assurances, major oil companies were not keen on investing in Venezuela, according to Treasury Secretary Scott Bessent. Other reports suggested Dutch-trader Vitol and Singapore-based Trafigura, two non-U.S. entities, were the first companies to secure business in the Latin American country. Both companies have obtained preliminary licenses to negotiate and export Venezuelan crude.
Meanwhile, Secretary of State Marco Rubio, during a Senate Foreign Relations Committee hearing on Wednesday, stated that the Trump administration will soon allow Venezuela to sell oil currently under U.S. sanctions, with the revenue initially used for basic government services like policing and healthcare, under Washington’s oversight. He mentioned that the interim leaders of the South American nation will provide “a budget” each month outlining their funding needs.
Benzinga’s Edge Rankings place Chevron in the 79th percentile for value and the 57th percentile for momentum, reflecting its mixed performance. Benzinga’s screener allows you to compare Chevron’s performance with its peers.
Price Action: Over the past year, Chevron stock climbed 9.51%, as per data from Benzinga Pro. On Thursday, the stock climbed 0.74% to close at $171.19.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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