Chevron and Eni Commit to Major Investments in Venezuelan Oil Industry
Venezuela's oil production is set to receive a major boost as US oil major Chevron and Italy's Eni announce significant investments in the country. The deals were signed at a ceremony in Caracas attended by Venezuela's interim President Delcy Rodriguez and US Energy Secretary Chris Wright.
Chevron plans to invest over $7 billion to double its Venezuelan production to around 600,000 barrels per day (bpd) over the next five years by expanding its joint ventures with state oil company PDVSA. Eni, meanwhile, will pour in $1.5 billion into the Junin 5 heavy-oil area of the Orinoco Belt.
The agreements are part of a larger investment plan worth around $100 billion that officials say could double Venezuela's output in the coming years. The country currently produces about 1.25 million barrels of oil per day, well below its peak of around 3 million bpd in the late 1990s.
GE Vernova also signed an alliance covering Venezuela's power sector, which has struggled with electricity shortages affecting households and key industries.