Chevron Doubles Down on Venezuelan Oil with $7 Billion Investment

Chevron has announced plans to invest $7 billion in its Venezuelan oil projects, aiming to double its current production of around 300,000 barrels per day by 2031. The company expects to produce approximately 600,000 barrels a day from the projects in five years.

Despite the uncertain political environment, Chevron is the only major US oil company that has maintained a presence in Venezuela over the past few decades. It increased its ownership stake in its joint venture with Petróleos de Venezuela, S.A (PDVSA) to 49% in April.

The company will exploit new oil fields in the Orinoco Belt, where the oil is cheap to produce at under $20 a barrel, compared to the current price of around $90 a barrel for US oil. Chevron's chairman and CEO, Mike Wirth, said the investment reflects 'our confidence in the country's deep resource potential.'