Chevron Doubles Down on Venezuela with $7 Billion Oil Investment

Chevron has announced plans to invest $7 billion in Venezuela to double its oil production in the country, following a deal between the US and Venezuelan governments.

The company's CEO, Mike Wirth, stated that improved terms and additional acreage will enable Chevron to strengthen its portfolio and deliver low-cost oil growth, while also supporting energy supply and creating long-term value.

Chevron has been assigned two more oil fields in the Orinoco Belt, where most of Venezuela's reserves are located. The company aims to produce around 600,000 barrels per day, up from its current 280,000.

The deal also involves US-backed North American Blue Energy Partners (NABEP), which has been granted 100-year concessions for 17 oil fields by the Venezuelan government led by interim President Delcy Rodriguez. NABEP will invest up to $100 billion in new oil infrastructure and pay around $200 billion in royalty and tax payments over the first 25 years.

The White House claims that this deal will allow the US to replenish its Strategic Petroleum Reserve, which has been depleted due to the war in Iran. President Donald Trump described it as a 'gift' from Venezuela to the US people.