Chevron Commits $7 Billion to Revive Venezuelan Oil Production

US oil giant Chevron has announced a five-year expansion program in Venezuela, investing over $7 billion to more than double its active drilling rigs in the country. The project aims to increase average daily crude production to 600,000 barrels by 2031, nearly doubling current levels of around 290,000 barrels per day.

Chevron's Chief Financial Officer Eimear Bonner confirmed the initiative at an investor conference hosted by Barclays, stating that once the joint venture reaches its target output, production is expected to plateau between 600,000 and 700,000 barrels per day. Venezuela's vast resource base gives the company an opportunity to extend this high-output period by five to ten years.

The investment represents one of the largest commitments by an international oil company in Venezuela in recent years, further solidifying Chevron's dominant position in the country's oil landscape. The project also secures a key safeguard for Chevron, the right to international arbitration, which was a precondition for its return to the country.