US seeks to increase oil production in Venezuela to 1.5 million barrels per day
The United States intends to increase oil production in Venezuela to 1.5 million barrels per day in the short term. This was stated by US Secretary of the Interior Doug Burgum, Anadolu Agency reports.
According to Burgum, US companies are expected to play a key role in rapidly increasing production. He described Venezuela as a strategic energy partner of the United States, citing the country’s substantial oil reserves and its location outside the Middle East conflict zone, which has disrupted energy flows through the Strait of Hormuz.
Investment in oil fields
Burgum said that increased production in Venezuela could partially offset disruptions to global energy supplies linked to the Middle East conflict, as well as strengthen US energy security. According to the agency, Washington seeks to attract more investment into Venezuela’s oil industry and increase production from the country’s large reserves.
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The agreement between Washington and Caracas covers 17 strategic oil fields. According to Venezuelan authorities, it is expected to attract more than $100 billion in investment. Anadolu Agency also notes that the United States is seeking additional supplies following a June agreement with Iran that temporarily eased restrictions on the sale of Iranian oil.
Chevron and Eni plans
US-based Chevron plans to invest more than $7 billion over the next five years and increase production at its Venezuelan operations to about 600,000 barrels per day. Italian energy company Eni has also signed an agreement with Venezuela to develop the Junín-5 oil field in the Orinoco Basin.
Venezuela has the world’s largest proven oil reserves, but its production remains significantly below the levels of previous decades. President Donald Trump’s administration is also considering the expansion of Venezuela’s oil sector as an opportunity to replenish the US Strategic Petroleum Reserve at lower prices.
