Chevron Doubles Down on Venezuela with $7 Billion Investment
Chevron is expanding its presence in Venezuela by investing over $7 billion through joint ventures to double oil production to around 600,000 barrels per day within five years. This move comes after US President Donald Trump unveiled a deal involving a fifth of Venezuela's oil reserves, with the American government taking an equity stake in a private oil firm operating there.
Chevron's Petroindependencia joint venture will expand to include two adjacent areas in the Carabobo region, located in Venezuela's vast Orinoco Belt. The company's CEO, Mike Wirth, stated that Chevron has operated in Venezuela since 1923 and has confidence in the country's deep resource potential.
The new agreements provide enhanced fiscal, commercial, and legal terms to protect long-term investments, with total production costs expected to be less than $20 per barrel. The joint venture's infrastructure is reportedly in good shape, with development in the new areas building off existing facilities and pipeline infrastructure.