Chevron Invests $7 Billion in Venezuelan Oil Operations
Chevron is expanding its operations in Venezuela, marking a significant move into the oil-rich country. The Houston-based company said it plans to invest over $7 billion over the next five years as part of a joint venture, with the goal of increasing production to approximately 600,000 barrels of oil per day.
The expansion comes after the U.S. and Venezuela struck an oil deal on Friday, granting American companies access to 65 billion barrels of oil. Chevron's CEO, Mike Wirth, stated that the company is confident in Venezuela's resource potential and its ability to compete for investment within their portfolio for decades.
The move has been met with caution by some experts, who note that restoring Venezuela's oil production will require significant effort and investment. According to Rystad Energy, it would take more than a decade and $183 billion to effectively restore Venezuela's oil production to its 1990s-era level of around 3 million barrels a day.
Chevron first established a presence in Venezuela in the 1920s and has maintained operations there despite previous difficulties. The company will expand its footprint in the Orinoco Belt, where much of Venezuela's oil reserves lie.