Chevron to expand Venezuela operations through $7 billion investment
Chevron has announced a $7 billion investment to significantly expand its oil production in Venezuela over the next five years. The company aims to increase output to 600,000 barrels per day by 2031, citing improved investment conditions under new hydrocarbon laws.
Why it matters
This move marks a major shift in global energy strategy and U.S.-Venezuela relations, signaling a return of significant Western capital to the region's oil sector.
Chevron moved Wednesday to more than double its oil production in Venezuela over the next five years through a $7 billion investment that expands its position in the South American nation.
The oil major has been assigned two additional oilfields in the Orinoco Belt, the region that contains most of Venezuela's vast reserves of extra-heavy crude oil. Chevron plans to increase production in the country to 600,000 barrels per day by 2031 compared with about 280,000 bpd currently.
Chevron, through joint ventures with state-owned oil company Petróleos de Venezuela SA, or PDVSA, is the only U.S. oil major active in Venezuela. CEO Mike Wirth told CNBC that Venezuela has become more attractive for investment since the interim government passed a new hydrocarbon law that changed taxes, royalties and other conditions.
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