Chevron Drops $7 Billion on Venezuelan Oil
Chevron has agreed to invest over $7 billion in Venezuela's oil industry, targeting production of around 600,000 barrels per day. The US energy major plans to develop two major oil fields in the Orinoco Belt and expand its presence in the country.
The deal marks a significant expansion of Chevron's operations in Venezuela, where it currently produces around 280,000 bpd through three joint ventures with the state oil company. The company has been operating in Venezuela for decades, despite facing expropriation by the government in 2007.
The investment comes as the US pushes for greater access to Venezuela's vast oil reserves, with Washington negotiating long-term leases and potentially taking significant stakes in the country's oil fields. Other foreign producers, including SLB and Hunt Oil, have also been moving into the country.
Venezuela faces major production challenges due to degraded infrastructure and legacy environmental liabilities, but industry experts estimate that restoring output to 3 million bpd could take over a decade.