Chevron Commits $7 Billion to Venezuela's Oil Revival

Chevron has announced plans to invest over $7 billion in Venezuela's oil industry over the next five years, targeting more than double its current production of 280,000 barrels per day (bpd) to 600,000 bpd.

The US oil major will participate in two additional fields in the Orinoco Belt through its Petroindependencia joint venture with state-owned PDVSA, which also provides improved fiscal, commercial and legal terms.

Chevron is currently the only US oil major producing in Venezuela, but it's not alone in seeing potential. GeoPark will enter the country by acquiring 95% of the company holding the Bare heavy-oil block in the Orinoco Belt for $1.22 billion, and Eni has secured a 25-year production-sharing arrangement including the Junín 5 heavy-oil area.