Chevron Doubles Down on Venezuelan Oil with $7 Billion Investment

Chevron has pledged to invest $7 billion in its Venezuelan oil projects, expecting to double its current production by 2031. The company currently produces around 300,000 barrels per day and hopes to reach 600,000 barrels per day within five years.

The move is seen as a long-expected decision after the US government's January ousting of former President Nicolás Maduro, which had made it easier for companies like Chevron to invest in Venezuela. Despite this, US oil companies have been slow to commit to new investments due to the country's uncertain political environment.

Chevron is the only major US oil company that has maintained a presence in Venezuela throughout the past several decades and has increased its ownership stake in its joint venture with Petróleos de Venezuela, S.A (PDVSA) from 40% to 49%. The company plans to exploit new oil fields in the Orinoco Belt, which produces thick, sludgy oil that can be refined at a cost of less than $20 per barrel.

Chevron's chairman and CEO Mike Wirth said, 'Our expanded position reflects our confidence in the country's deep resource potential. This progress reflects the dedication of our Venezuelan employees and our long-standing focus on the responsible development of the country's resources.'