Chevron, a US supermajor, continues its joint venture production operations in Venezuela, an Opec member nation, despite the recent US military capture of Venezuelan President Nicolas Maduro and his wife. The company's production in the country is approximately 200,000 barrels per day of crude, contributing significantly to Venezuela's total reported output of around 900,000 bpd.

Operational Stance and Compliance

A Chevron spokesperson stated the company remains focused on employee safety and asset integrity, operating uninterrupted and in full compliance with all relevant laws and regulations. Chevron has maintained a licence from the US Office of Foreign Assets Control since the fourth quarter of 2022, allowing it to produce and export crude from its existing assets in Venezuela.

Geopolitical Risks and Positioning

An investing group leader noted that geopolitical instability, particularly Venezuelan territorial claims against Guyana, has the potential to significantly disrupt Chevron's regional operations if not managed properly. However, the current outlook is described as promising. Analysts at TD Cowen, David Deckelbaum and Jason Gabelman, echoed that Chevron is well-positioned to benefit from any future oil production expansion projects in Venezuela, due to its established presence and the unique agreement it operates under, which previously allowed no payments to the Maduro regime.