Chevron Expands Operations in Venezuela Amid Trump's Oil Development Deal
US oil giant Chevron announced it will expand its operations in Venezuela after President Donald Trump's deal to develop the nation's oil reserves. The company, which has been present in Venezuela since 1923, has been assigned additional acreage in the Orinoco Belt and plans to invest over $7 billion over five years.
Chevron aims to double its current production to around 600,000 barrels per day from about 300,000 currently. Venezuela holds the world's largest proven oil reserves, with more than 303 billion barrels of crude oil.
The deal has been met with skepticism from energy experts who say it will take years to revive Venezuela's oil industry. The agreement also raises questions about whether Venezuelan acting President Delcy Rodríguez has the authority to give Chevron 100-year rights over 17 oil fields with reserves of 65 billion barrels.
Chevron CEO Mike Wirth said in a statement, 'Chevron's history in Venezuela spans more than a century, and our expanded position reflects our confidence in the country's deep resource potential.'