Chevron is investing more than $7 billion in Venezuela's oil production
The American oil company Chevron plans to invest more than $7 billion in its joint ventures in Venezuela. Over the next five years, the company intends to double its oil production—to approximately 600,000 barrels per day.
Under the new agreements, the Petroindependencia joint venture will expand its operations to include two adjacent blocks in the Carabobo region within the Orinoco Oil Belt.
“Chevron’s history in Venezuela spans more than a century. Our expansion reflects our confidence in the country’s significant resource potential and its ability to compete for investment in our portfolio over the coming decades,” said Chevron CEO Mike Wirth.
Chevron’s decision was announced after U.S. President Donald Trump unveiled a deal involving one-fifth of Venezuela’s oil reserves. Chevron’s expansion is a standalone project, but it also aligns with Washington’s efforts to increase oil production in the country.
Venezuela has the world’s largest oil reserves, but its current production stands at about 1.25 million barrels per day. This is significantly less than the more than 3 million barrels per day the country produced two decades ago, due to years of management problems and insufficient investment in the state-owned oil company PDVSA.
U.S. Energy Secretary Chris Wright stated that Venezuela’s total oil production could rise to 2 million barrels per day by the end of the decade.
Chevron noted that the new agreements provide for improved financial, commercial, and legal terms to protect long-term investments. The company expects total production costs to be less than $20 per barrel.
Source: Reuters.
Chevron may announce an expansion of its oil operations in Venezuela.
The U.S. attributed the oil deal with Venezuela to falling prices and efforts to counter the influence of Russia and China.
