Chevron Invests Big in Venezuelan Oil Ventures
Chevron Corporation has announced plans to invest over $7 billion in its Venezuelan joint ventures over the next five years. The investment aims to more than double oil production from around 300,000 barrels per day to approximately 600,000 barrels per day.
The agreements provide Chevron's joint ventures with enhanced fiscal, commercial and legal terms aimed at supporting long-term investment and project development. This move comes after the US Energy Secretary Chris Wright is set to travel to Venezuela for an expected announcement on Chevron's plans to expand its operations.
Chevron said that total costs in Venezuela are below $20 per barrel and credited the US administration, particularly the Department of Energy, for helping facilitate conditions for further investment and growth. The company expects the latest agreements to support more than $7 billion of investment over the next five years, with production targeted at approximately 600,000 barrels per day.
Chevron Chairman and CEO Mike Wirth said that 'With improved terms and additional acreage, we are strengthening a portfolio that we believe can deliver attractive low-cost oil growth, support energy supply and create differentiated long-term value.'