Chevron Pours $7 Billion into Venezuela Amid US-Led Oil Deal

Chevron has agreed to invest more than $7 billion in Venezuela over the next five years, following an updated joint venture deal between the energy giant and the South American nation. This move comes after months of negotiations and follows Washington's recent announcement of a deal giving the U.S. majority control over roughly 65 billion barrels of Venezuelan oil reserves.

The new investment will support production growth at Chevron's three Venezuelan joint ventures, which have raised output by 15% this year. The company expects total costs to stay below $20 per barrel. Chevron has been operating in Venezuela for more than a century and currently operates through three joint ventures: Petroindependencia and Petropiar, both in the Orinoco Belt, and Petroboscan, in the western state of Zulia.

Chevron CEO Mike Wirth said the company's history in Venezuela spans over a century, and its expanded position reflects its confidence in the country's deep resource potential. Chevron has kept operating in Venezuela while ExxonMobil and ConocoPhillips have stayed out of the country since exiting in 2007.