Chevron Commits $7 Billion to Venezuela Oil Expansion

Chevron has announced plans to invest over $7 billion in its Venezuelan operations through joint ventures, aiming to double oil production to approximately 600,000 barrels per day within the next five years.

The company's Petroindependencia joint venture will expand to include two adjacent areas in the Carabobo region of Venezuela's vast Orinoco Belt, where it will increase extra-heavy oil production.

Chevron's CEO Mike Wirth stated that the expansion reflects the company's confidence in Venezuela's resource potential and ability to attract investment. The announcement comes just days after U.S. President Donald Trump unveiled a deal involving a fifth of Venezuela's oil reserves, with the American government taking an equity stake in a private oil firm operating there.

Venezuela has the world's largest oil reserves but has struggled with low output due to years of mismanagement and underinvestment by state-run oil firm PDVSA. Chevron's expansion is separate from Trump's endeavour but cements his efforts to increase output in Venezuela, which is expected to reach 2 million barrels per day by the end of this decade.