Chevron Doubles Down on Venezuela with $7B Oil Investment
Oil giant Chevron has secured new agreements to expand its operations in Venezuela, investing over $7 billion in the country's oil industry over the next five years. The updated terms and additional acreage for Chevron's joint ventures aim to more than double production from approximately 600,000 barrels per day.
The company said that production across its three Venezuelan joint ventures has already increased by 15% so far this year, with total costs kept below $20 per barrel. As part of the agreements, Petroindependencia was assigned rights to develop the adjacent Carabobo-1 and Carabobo-2-South-A areas in Venezuela's Orinoco Oil Belt.
Chevron Chairman and CEO Mike Wirth stated that the agreements 'strengthen a portfolio that we believe can deliver attractive low-cost oil growth, support energy supply and create differentiated long-term value.' The investment push comes amid a shift in the U.S.-Venezuela relationship following the January U.S. military operation that captured former President Nicolás Maduro.
Separately, Chevron credited the Trump administration with helping facilitate conditions for further investment and growth in Venezuela. Wirth emphasized the importance of continued engagement between government and industry to advance projects supporting energy security, economic growth, and investment.