Chevron plans to increase production in Venezuela by investing $7 billion
Chevron, a U.S. oil firm, stated on Wednesday that it will invest over $7 billion through its joint ventures in Venezuela. In order to treble oil production over the next five years, reaching roughly 600,000 barrels per day.
In accordance with recent agreements, Petroindependencia, Chevron’s joint venture, will grow to encompass two nearby regions in the Carabobo region of Venezuela’s extensive Orinoco Belt.
«With over a century of experience in Venezuela, we are confident in the country’s enormous resource potential and its capacity to compete for investment within our portfolio for decades to come,» Chevron CEO Mike Wirth said in a statement.
The declaration was made a few days after U.S. President Donald Trump disclosed an extraordinary agreement in which the U.S. government purchases stock in a private oil business. That operates in Venezuela in exchange for one-fifth of the country’s oil reserves.
Although Chevron’s growth is unrelated to that plan, it supports Trump’s attempts to increase output in Venezuela.
Venezuela has the greatest oil reserves in the world, but due to years of poor management and underinvestment by the state-owned oil corporation PDVSA. Current production is just approximately 1.25 million barrels per day, significantly below the more than 3 million barrels per day attained two decades ago.
2 million barrels per day
U.S. Secretary of Energy Chris Wright stated on Wednesday that Venezuela’s total oil production is expected to surpass 2 million barrels per day by the end of this decade.
Chevron added that overall production costs are anticipated to stay below $20 per barrel. That its new agreements also provide better fiscal, commercial, and legal terms to protect long-term investments.
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Venezuela’s total oil production is projected to reach 2 million barrels per day by the end of this decade, U.S. Secretary of Energy Chris Wright said on Wednesday. Chevron stated that its new agreements also offer improved fiscal, commercial, and legal terms to safeguard long-term investments, adding that total production costs are expected to remain below $20 per barrel.
