Chevron Expands Operations in Venezuela Amid Skepticism
US oil giant Chevron has confirmed plans to expand its operations in Venezuela, investing more than $7 billion over five years and aiming to double daily production to around 600,000 barrels. The move comes as part of an ambitious deal announced by President Donald Trump to develop Venezuela's vast oil reserves.
Chevron has been operating in Venezuela since 1923 and already has a presence in the Orinoco Oil Belt through joint ventures. The company plans to increase its stake with the assignment of additional acreage, citing 'confidence' in the country's resource potential and ability to compete for investment.
However, experts have expressed skepticism about the deal's feasibility, warning that it will take years to revive Venezuela's oil industry, which has been severely degraded due to neglect and international sanctions. The agreement has also raised questions about legitimacy, with critics arguing that it was reached without proper approval from the National Assembly.
Despite these concerns, Chevron CEO Mike Wirth expressed optimism about the deal, stating that 'our expanded position reflects our confidence in the country's deep resource potential.'