Chevron Sets Sights on Venezuela Expansion

Chevron announced its growth plan at the Barclays energy-power conference, focusing on expansion in Venezuela and cost-cutting measures. The company plans to double production in Venezuela to 600,000 barrels per day by 2031 with a $7 billion investment over five years.

The investment will be used to raise output from 280,000 barrels per day, with the asset base expected to support a plateau of 600,000 to 700,000 barrels per day for five to 10 years at the primary recovery stage. Chevron described the project as a low-cost, factory-style development with total costs below $20 a barrel.

The company has already achieved $3 billion in structural cost cuts six months ahead of schedule, with about 70% of those savings coming from efficiency gains.