Chevron Delves Deeper into Venezuelan Oil Reserves with $7 Billion Expansion
Chevron has announced plans to expand its operations in Venezuela, investing over $7 billion through joint ventures to double oil production to approximately 600,000 barrels per day within five years.
The move comes as part of a broader effort by the US government to increase energy investment in the country. Chevron's Petroindependencia joint venture will now operate two adjacent areas in the Carabobo region, located within Venezuela's vast Orinoco Belt.
Chevron CEO Mike Wirth stated that this expansion reflects the company's confidence in Venezuela's resource potential and its ability to compete for investment. The new agreements also provide enhanced fiscal, commercial, and legal terms to protect long-term investments.
Total production costs are expected to be less than $20 per barrel, with existing infrastructure in good condition. Development will build off existing facilities and pipeline infrastructure, Wirth said.