Chevron Doubles Down on Venezuelan Oil with $7 Billion Investment
US oil giant Chevron has made a significant investment in Venezuela's energy sector. The company plans to invest $7 billion over the next five years, which will more than double its oil production in the country to 600,000 barrels per day.
Chevron calls this deal a 'turning point' for energy in Venezuela, according to Bob Fryklund, vice president and chief strategist at S&P Global Energy. He said it's a significant investment for Chevron, but also the largest by an individual company in Venezuela so far.
The investment will be used to build on Chevron's existing operations in the country, which have been in place for decades. This makes sense for them to continue growing their asset, according to Fryklund.
However, other supermajors like ExxonMobil might be hesitant to follow suit, as they would need to start from scratch and face political risks associated with investing in Venezuela.