Chevron to invest more than $7 billion in Venezuelan oil projects — OilPrice
US company Chevron plans to invest more than $7 billion in Venezuela over the next five years and more than double oil production in the country — to approximately 600,000 barrels per day. OilPrice reports, citing Reuters.
Investments through 2031
Chevron said that the funds through 2031 will be invested by its three joint ventures in Venezuela. According to the company’s estimate, total oil production costs will remain below $20 per barrel.
Chevron currently produces about 290,000 barrels of oil per day in Venezuela, Reuters reports. This entire volume is exported to the United States. Venezuela’s total oil production amounts to approximately 1.1–1.2 million barrels per day, while in the late 1990s it exceeded 3 million barrels per day.
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Areas in the Orinoco Basin
The investments follow new agreements between Chevron and Venezuela. They provide for improved fiscal, commercial and legal conditions, as well as additional areas in the Orinoco Basin.
The new areas include Carabobo-1 and Carabobo-2-South-A, transferred to the Petroindependencia joint venture, in which Chevron holds a 49% stake. In April, the company increased its stake in this venture to 49% and also obtained rights to develop the Ayacucho-8 area near the Petropiar joint venture.
According to OilPrice, Chevron’s three joint ventures in Venezuela have increased production by 15% since the beginning of the year. Earlier, Chevron’s agreements with the Venezuelan side were described as large-scale arrangements without disclosure of a specific investment amount or production target.
