Chevron Commits $7 Billion to Venezuelan Oil Expansion

US oil giant Chevron has announced plans to significantly expand its operations in Venezuela. The company will invest over $7 billion in the country's Orinoco Belt over the next five years, with production expected to more than double from current levels.

The expansion covers Chevron's existing ventures in the Orinoco Oil Belt and western Venezuela, including Petroindependencia and Petropiar. According to Chevron CEO Mike Wirth, the company's confidence in Venezuela's resources is driving the investment.

However, analysts have expressed doubts over how quickly Venezuela's oil production can recover after years of neglect and sanctions. Questions have also been raised over the legal durability of agreements granting long-term rights to oil fields.