Chevron Bets $7 Billion on Venezuela Oil Expansion
OPEC+ Set to Hold Oil Output Steady as Iran War Disrupts Supply Trump's 65-billion-barrel Venezuela oil deal… What I Cover My focus spans the global energy landscape and the technologies reshaping it, specifically focusing on oil and gas, renewables, and tech-driven market… 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 about 600,000 barrels per day,Reutersreported Wednesday.
The investment followsnew agreements with Venezuela that give Chevron improved fiscal, commercial and legal terms and additional acreage in the Orinoco Belt.
Chevron said its three Venezuelan joint ventures will invest the money through 2031, with total production costs remaining below $20 per barrel.
Chevron currently produces about 290,000 bpd in Venezuela, all of which is exported to the United States, according to Reuters.
Venezuela is producing about 1.1 million to 1.2 million bpd, down from more than 3 million bpd in the late 1990s.
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 next to its Petropiar venture.
Its three Venezuelan joint ventures have increased production by 15% so far this year.
Wednesday’s announcement puts a dollar figure and production target on theChevron agreementsthat 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 about 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.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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