US oil giant Chevron to expand Venezuela operations
Summary
Chevron will spend more than $7 billion over the next five years to double its oil production in Venezuela to around 600,000 barrels per day. The company received new areas to develop in the Orinoco Belt and expects to benefit from improved contract terms and existing infrastructure.Key Facts
- Chevron plans to invest over $7 billion in Venezuela’s oil projects to increase production to 600,000 barrels per day.
- The company was assigned additional land in the Orinoco Belt, expanding its Petroindependencia joint venture.
- Venezuela has the world’s largest oil reserves but oil output has dropped from over 3 million barrels per day to about 1.25 million.
- Chevron’s costs are expected to be less than $20 per barrel, aided by existing infrastructure like roads and pipelines.
- Other companies like ENI, KEO Capital, and Primavera are also preparing to sign energy contracts in Venezuela.
- The expansion supports U.S. efforts under President Donald Trump to increase Venezuela’s oil output and investment.
- Venezuela’s oil output is expected to reach 2 million barrels per day by the end of this decade, according to the U.S. Energy Secretary.
- Chevron has operated in Venezuela continuously since 1923, with three joint ventures in the country.
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