Chevron Dives Deep into Venezuelan Oil with $7 Billion Bet

Chevron is expanding its presence in Venezuela, investing over $7 billion in the country's oil sector over the next five years.

The move comes as the company seeks to double its production to around 600,000 barrels per day. This marks a significant increase from current levels and is part of Chevron's long-term strategy to tap into Venezuela's vast energy resources.

Chevron has been operating in Venezuela since 1923, but its two main US rivals, ExxonMobil and ConocoPhillips, have not operated there since their assets were nationalized by former President Hugo Chávez in 2007. The companies are still pursuing compensation for the seizures.

The new development will run through Petroindependencia, a joint venture between Chevron and PDVSA, Venezuela's state-run oil company. The agreement improves business terms for Chevron's Venezuelan ventures, with production costs expected to remain below $20 per barrel.