Wire flash
FinanceChevron plans $7 bln investment to double Venezuela oil output to 600,000 bpd
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
Chevron announced a $7 billion investment plan to expand its oil production in Venezuela over the next five years, aiming to more than double output to approximately 600,000 barrels per day. The investment follows new agreements with the Venezuelan government that grant Chevron improved fiscal, commercial, and legal terms, as well as additional acreage in the Orinoco Belt. Chevron currently produces about 290,000 bpd in Venezuela, all exported to the United States. The company's three Venezuelan joint ventures will invest through 2031, with production costs remaining below $20 per barrel. New acreage includes the Carabobo-1 and Carabobo-2-South-A areas, and Chevron increased its stake in Petroindependencia to 49%. The announcement comes amid broader U.S. efforts to rebuild Venezuela's oil industry following the removal of Nicolás Maduro, with President Trump calling for roughly $100 billion in investment. Other major oil companies like ExxonMobil and ConocoPhillips have not yet returned after their assets were nationalized in 2007.
Source report
Chevron will invest more than $7 billion in Venezuela over the next five years and more than double its oil production in the country to approximately 600,000 barrels per day (bpd), Reuters reported Wednesday.
Investment Details
The investment follows new agreements with Venezuela that grant Chevron improved fiscal, commercial, and legal terms, as well as additional acreage in the Orinoco Belt. Chevron stated that its three Venezuelan joint ventures will deploy the capital through 2031, with total production costs remaining below $20 per barrel.
Current Production Context
Chevron currently produces about 290,000 bpd in Venezuela, all of which is exported to the United States, according to Reuters. Venezuela's overall production stands at roughly 1.1 million to 1.2 million bpd, a sharp decline from more than 3 million bpd in the late 1990s.
New Acreage and Stake Increases
The new acreage includes the Carabobo-1 and Carabobo-2-South-A areas in the Orinoco Belt, assigned to Petroindependencia—the joint venture in which Chevron holds a 49% interest. Chevron also increased its Petroindependencia stake to 49% in April and received rights to develop the Ayacucho 8 area adjacent to its Petropiar venture. Its three Venezuelan joint ventures have increased production by 15% so far this year.
Broader Context
Wednesday’s announcement provides a specific dollar figure and production target for the Chevron agreements, which were nearing completion earlier this week. Those agreements were previously described only as being of "significant size," with Chevron seeking additional Orinoco Belt acreage.
Chevron’s investment is separate from Washington’s agreement to take a majority stake in 17 Venezuelan oilfields containing approximately 65 billion barrels of proved reserves. President Donald Trump has also called for roughly $100 billion of investment to rebuild Venezuela’s oil industry following the U.S. capture and removal of Nicolás Maduro in January.
ExxonMobil and ConocoPhillips have yet to return after their Venezuelan assets were nationalized under Hugo Chávez in 2007.
By Michael Kern for Oilprice.com
More Top Reads From Oilprice.com
Source
OilPrice.com Daily News UpdateWestern
Part of this Story
Chevron invests $7 billion to more than double Venezuela oil production to 600,000 bpd