Venezuela Oil Producers Commit to Major Project Expansions

A group of foreign energy producers has committed to expanding oil projects in Venezuela under the watchful eye of the US government. Chevron and Eni, along with other companies, signed deals to boost output in the country, which currently produces around 1.25 million barrels per day, far short of its peak of 3 million bpd in the late 1990s.

The agreements are separate from a recent deal between Caracas and Washington that gives the US access to 17 oilfields. The signings represent an effort by private companies with a longstanding presence in Venezuela to help revive its struggling oil industry.

Chevron plans to invest more than $7 billion to double its output in the country to around 600,000 bpd over the next five years as part of its strategy of expanding joint ventures with PDVSA. Eni also signed a deal to expand into the Junin 5 heavy oil area in the Orinoco Belt, where it plans to invest $1.5 billion.

The US Energy Secretary Chris Wright attended the signing ceremony and expressed optimism about the potential for growth. 'We are trying to work at what I call Trump-speed,' he said. 'President Trump didn't want a nudge or a slow drift in a positive direction. He wanted to see as fast as possible transformation in Venezuela.'