Chevron Doubles Down on Venezuelan Oil Investment
US oil major Chevron (CVX) has announced plans to invest $7 billion in Venezuela, more than doubling its oil production in the country. The company will operate two additional oilfields in the Orinoco Belt, which contains most of Venezuela's heavy crude reserves.
Currently, Chevron produces around 280,000 barrels per day in Venezuela. However, management plans to increase this to 600,000 barrels per day. This expansion comes as the US government pushes for increased oil production in Venezuela.
The US has secured control over 65 billion barrels of Venezuela's crude reserves through concessions granted by the interim government. Chevron is the only major US oil company currently active in Venezuela, with other American companies having pulled out over the past two decades due to mismanagement and disrepair of the country's energy infrastructure.
The stock price of CVX has risen 30% over the last 12 months, trading at $211.05 per share.