Chevron Doubles Down on Venezuela Oil Plans with $7 Billion Investment

Chevron is expanding its operations in Venezuela as part of an ambitious plan to develop the country's oil reserves, which hold over 303 billion barrels of crude. The company will invest more than $7 billion over five years and double production to approximately 600,000 barrels a day.

The expansion comes after President Donald Trump announced a deal with the Venezuelan government to tap into the country's oil industry, with Chevron as the only U.S. oil company with a major presence in Venezuela. The joint venture plans include investing over $7 billion and increasing production from around 1.1 to 1.2 million barrels per day.

Trump has been pushing for U.S. businesses to restore their presence in Venezuela, citing it as a path away from reliance on oil from the Middle East. Chevron's CEO Mike Wirth said that the company is strengthening its portfolio with improved terms and additional acreage, which will deliver attractive low-cost oil growth and create long-term value.

The announcement has been met with skepticism by analysts who say it will take years to revive Venezuela's oil industry, which has been in disarray after years of neglect. Energy experts have also questioned the legal authority of Venezuela's acting President Delcy Rodríguez to give Chevron 100-year rights over 17 oil fields with reserves of 65 billion barrels.