Chevron Expands Operations in Venezuela Amid Trump-Backed Deal
US oil giant Chevron has announced that it will expand its operations in Venezuela. The expansion comes after President Donald Trump's deal to develop Venezuela's oil reserves and give the Pentagon a stake in the profits.
Chevron, which is the only US oil company with a major presence in Venezuela, has been assigned additional acreage in the Orinoco Belt. The company plans to invest over $7 billion over the next five years, aiming to more than double its current production to about 600,000 barrels per day.
Venezuela holds the world's largest proven reserves, with over 303 billion barrels of crude oil. However, due to severe infrastructure degradation and international sanctions, Venezuela's daily production is around 1 million barrels compared to Saudi Arabia's 10-11 million barrels.
US Energy Secretary Chris Wright attended a ceremony in Caracas where Chevron and other energy companies signed agreements with the Venezuelan government. President Trump has eyed Venezuela's oil since January when he pressed for US businesses to return to the country.