Chevron's Long Game Pays Off in Venezuela with Landmark Oil Deal

Chevron's patience in Venezuela has finally paid off after two decades of staying in the country while its peers left. The company endured US sanctions, accounting write-offs, arrests of employees, and accusations of corruption. It now stands to gain billions of barrels of reserves, enough to last into the 2040s.

The deal is part of a US government-led push to revive Venezuela's oil industry. Chevron plans to invest $7 billion over five years through joint venture partnerships in Venezuela. The company expects to produce 600,000 barrels of Venezuelan crude per day at a cost of less than $20 a barrel.

Chevron CEO Mike Wirth said the company had to be patient and look at the situation long-term, not becoming discouraged by difficulties. He noted that Chevron's strategy had costs, but it was worth it in the end.