Chevron Pours $7 Billion into Venezuela Oil Expansion

Chevron is expanding its presence in Venezuela with a $7 billion investment plan over five years, aiming to more than double oil production to 600,000 barrels per day.

The American energy giant has been operating in the country since 1923 and has maintained operations despite other companies leaving. The new agreement includes updated fiscal, commercial, and legal conditions that will allow Chevron to accelerate its joint ventures with PDVSA.

The plan involves not just investing more money in existing fields but also developing new areas in the Orinoco Belt. Petroindependencia, a joint venture with Chevron holding 49% stake, has received rights to develop two additional areas: Carabobo-1 and Carabobo-2-South-A.

Chevron's current production level in Venezuela is around 290,000 barrels per day, but the company believes that new areas, existing infrastructure, and more favorable contractual conditions will enable faster growth. The total costs of its operations in the country are expected to remain below $20 per barrel, making the assets competitive within Chevron's global portfolio.