Chevron Bolsters Venezuela Heavy Oil Position in Asset Swap

Chevron Corp. has expanded its heavy oil footprint in Venezuela through a new asset swap agreement with the country's state-owned oil company, according to a report from Rigzone. The deal highlights the international scope of major Bakken operators while their core North Dakota assets continue steady production.

Under the agreement signed with Petróleos de Venezuela SA (PDVSA), Chevron will grow its stake in the Petroindependencia SA joint venture to 49% and secure development rights for the Ayacucho 8 area for its Petropiar SA venture. In exchange, Venezuela will receive Chevron's interests in several offshore gas licenses and another joint venture. Javier La Rosa, president of Chevron Base Assets and Emerging Countries, stated the deal "expands Chevron’s heavy oil position in two key joint ventures in Venezuela and reflects our disciplined development of the country's significant resources."

The move underscores Chevron's long-term, albeit carefully managed, presence in Venezuela. The company noted its activities have been conducted under U.S. authorizations due to sanctions. "We have been a part of Venezuela’s past for more than a century. We remain committed to its present," CEO Mike Wirth said in a January quarterly report, following the U.S. capture of Venezuelan leader Nicolás Maduro earlier this year.

For Bakken stakeholders, the news reaffirms Chevron's status as a global player with a diversified portfolio. The company's operations in Venezuela have been financially segregated from its core reported results since 2020. According to its 2025 annual report, results from Venezuela are recorded as non-equity investments, with income recognized only when cash is received, and production and reserves are not included in the company's headline results.

Chevron has continued to deliver Venezuelan crude oil to the U.S. under specific licenses, with deliveries continuing through January 2026. The company stated that based on revised U.S. authorizations, it will "continue delivery of crude oil produced from its Venezuelan assets to the U.S. and to the international market."

This international deal is unlikely to signal a shift in capital allocation away from the Bakken, where Chevron maintains a large, consistent position through its acquisition of Hess. Instead, it demonstrates the company's strategy of navigating complex geopolitical environments to access large-scale resources, while its North Dakota operations provide stable, sanctions-free production. The disciplined, authorization-dependent approach in Venezuela contrasts with the predictable regulatory environment of the Williston Basin.