Chevron Doubles Down on Venezuelan Oil with $7 Billion Bet

US energy giant Chevron has announced plans to invest $7 billion in its Venezuelan operations over five years, with the aim of doubling oil production from around 280,000 barrels per day to 600,000. The move will see Chevron gain fresh drilling rights inside the Orinoco Belt, a region known for its extra-heavy crude reserves.

The company's Petroindependencia venture, in which Chevron has a 49% stake, will gain access to two new tracts: Carabobo-1 and Carabobo-2-South-A. This expansion builds on previous investments, including the acquisition of development rights to the Ayacucho 8 tract.

Chairman Mike Wirth described the move as a long-term bet on Venezuela's oil potential, despite the added costs of extracting thick crude and shipping it. Chevron expects overall production costs to remain below $20 per barrel, which it considers competitive with its global operations.