Chevron Doubles Down on Venezuela Oil Production
Chevron is expanding its oil production in Venezuela through a joint venture that will more than double its current output to 600,000 barrels per day. The company's subsidiary holds a 49% interest in the joint venture, which plans to spend over $7 billion over the next five years.
The additional acres assigned to Chevron are located in the Orinoco Belt, an area known for heavy crude oil production. This is significant because Chevron is the only major U.S. oil company currently operating in Venezuela, having maintained operations despite ExxonMobil and ConocoPhillips pulling out in 2007.
The agreement between Chevron and the Venezuelan government appears to be separate from a recent announcement by the Trump administration about gaining access to some 21% of the country's estimated oil deposits through a partnership with North American Blue Energy Partners.