Chevron, the second-largest U.S. oil company, announced that it has been assigned additional acreage in the Orinoco Belt, where it has an established position. The joint venture plans include investing more than $7 billion over the next five years and increasing production, with sources indicating output could approximately double from current levels.

The agreement was signed in Caracas alongside a separate deal involving Italy's Eni, days after Venezuela reportedly agreed to grant the United States control of a fifth of its oil reserves. Chevron already accounts for about a quarter of Venezuela's oil production, according to reports.

The expansion represents a major bet on Venezuela's energy sector at a time of shifting geopolitical dynamics. The United States has maintained sanctions on Venezuela's oil industry, but recent negotiations have led to a thaw in relations, with the Biden administration easing some restrictions in exchange for democratic reforms.

Chevron's increased presence in the Orinoco Belt, one of the world's largest proven oil reserves, could reshape the global energy landscape by adding significant supply from a country that has seen production plummet over the past decade. However, the deal has drawn criticism from opponents of the Venezuelan government, who argue it provides legitimacy to President Nicolás Maduro's administration without sufficient guarantees of political change.

Al Jazeera reported that the agreements were signed in Caracas, underscoring the direct engagement between international oil firms and the Venezuelan government. The expansion is expected to boost Venezuela's struggling economy, which has been hit by years of sanctions, hyperinflation, and declining oil output.

Neither Chevron nor the White House has provided additional details on the specific terms of the agreement or the timeline for production increases. The company's announcement confirms earlier reports that it was in negotiations with Venezuelan authorities.