Chevron Doubles Down on Venezuela with $7 Billion Oil Production Plan

Chevron is expanding its presence in Venezuela with a $7 billion investment plan to double oil production in five years. The U.S. oil major will invest through its joint ventures, including Petroindependencia, which will expand into two adjacent areas in the Carabobo region of the Orinoco Belt.

Chevron's CEO Mike Wirth said that the company's history in Venezuela spans over a century and that the expansion reflects their confidence in the country's deep resource potential. 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 development building off existing facilities and pipeline infrastructure. Chevron has operated in Venezuela since 1923 and has three joint ventures in the country.

The expansion is separate from a deal announced by U.S. President Donald Trump involving a fifth of Venezuela's oil reserves. However, it further cements Trump's efforts to expand output in Venezuela, which has the world's largest oil reserves but struggles with low production levels due to years of mismanagement and underinvestment.