Chevron Bets $7 Billion on Venezuela Oil Expansion

Chevron plans to invest over $7 billion in Venezuela's oil sector over the next five years, aiming to more than double its oil production in the country to approximately 600,000 barrels per day, according to Reuters. This significant expansion follows new agreements that offer Chevron improved terms and additional acreage in the Orinoco Belt.

The company's three Venezuelan joint ventures will collectively invest this amount through 2031, with production costs expected to stay below $20 per barrel. Currently, Chevron produces around 290,000 barrels per day in Venezuela, all of which is exported to the United States, a figure that has increased by 15% so far this year.

The new acreage includes the Carabobo-1 and Carabobo-2-South-A areas, with Chevron holding a 49% stake in the Petroindependencia joint venture. In April, Chevron increased its stake in Petroindependencia to 49% and secured rights to develop the Ayacucho 8 area adjacent to its Petropiar venture. This investment puts a concrete figure and production target on the agreements nearing completion, which were previously described as of significant size, seeking additional acreage in the Orinoco Belt.