Chevron commits $7 billion to Venezuela oil growth

Chevron has pledged over $7 billion in investments over the next five years to boost oil production in Venezuela. The Houston-based company aims to double production to approximately 600,000 barrels a day, expanding its presence in the country's oil sector. Chevron's agreements with Venezuela provide updated terms, enabling long-term investment, project development, and increased output.

The expansion involves additional acreage in the Orinoco Belt, home to one of the largest concentrations of heavy crude in the world. The company's joint venture, Petroindependencia, has secured rights to develop the Carabobo-1 and Carabobo-2-South-A areas, adding to its existing operations in the Orinoco Belt. These new areas will allow Chevron to tap into additional extra-heavy oil resources.

Chevron's enhanced position in Venezuela reflects the company's confidence in the country's resource base and its ability to compete for investment. CEO Mike Wirth emphasized that the improved terms and additional acreage will support low-cost production growth and contribute to global energy supplies. Chevron expects total production costs in Venezuela to remain below $20 a barrel.

The investment follows a revised hydrocarbons framework and negotiations aimed at making projects more commercially attractive. The agreements, signed in Caracas, formalize conversion contracts for Petroboscán, Petropiar, and Petroindependencia. Chevron's expansion in Venezuela follows a broader US-backed initiative to rebuild the country's oil industry and raise production levels.