Chevron to expand in Venezuela, days after the U.S. and Venezuela strike oil deal
Chevron is expanding its oil operations in Venezuela following a new deal between the U.S. and the Venezuelan government. The move comes despite significant political instability in the country and skepticism from other major oil companies regarding the viability of investment there.
Why it matters
This expansion signals a major shift in U.S.-Venezuela energy relations and highlights the risks and rewards of investing in volatile geopolitical regions.
Stay up to date with our Up First newsletter, sent every weekday morning.
Chevron is expanding its existing operations in Venezuela, the Houston-based company said Wednesday. This comes in the wake of Friday's announcement that Venezuela will give the U.S. access to 65 billion barrels of oil.
"Our expanded position reflects our confidence in the country's deep resource potential and its ability to compete for investment within our portfolio for decades," said Chevron CEO Mike Wirth in an online statement . The company will expand its operations in the Orinoco Belt, where much of Venezuela's oil reserves lie.
Chevron is the largest foreign oil operator in Venezuela. The deal announced today expands its footprint at a time of political and economic uncertainty for Venezuela; the country has been run by an interim, unelected president, Delcy Rodríguez, who came into office after the U.S. captured former President Nicolás Maduro in January.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in