Chevron plans to double oil production in Venezuela with $7 billion investment

Chevron plans to invest $7 billion in Venezuelan oil projects, aiming to double production to 600,000 barrels per day by 2031. The company secured new oil fields in Venezuela's Orinoco Belt, with production costs under $20 per barrel. Chevron is the only major US oil company operating in Venezuela, now owning 49% of its joint venture with PDVSA. The Trump administration has encouraged US oil companies to invest in Venezuela, but Chevron is the only one to commit.

Chevron (CVX) signed updated agreements with Venezuela, expanding its operations in the Orinoco Belt. The new terms include fiscal, commercial, and legal provisions to support long-term investment. Chevron plans to more than double production to 600,000 barrels per day over five years, with investments exceeding $7 billion. The company's shares rose 0.77% in pre-market trading.

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Chevron plans to expand operations in Venezuela, investing $7B over 5 years to double production to 600,000 barrels/day by 2026. The move follows a US deal to develop Venezuela's oil reserves, with Chevron gaining additional acreage in the Orinoco Belt. Analysts express skepticism about the timeline and legality of the agreement.

U.S. Energy Secretary Chris Wright stated Venezuela's oil production could more than double in the coming years due to investments from U.S. and international companies, including Chevron, Eni, ONGC, GeoPark, and GE Vernova. This increase is expected to lower crude prices, though refining capacity remains a bottleneck for gasoline and diesel prices. Additionally, a separate agreement grants a U.S. company, NABEP, a 100-year lease on 17 Venezuelan oil fields with 65 billion barrels of reserves.

Chevron (CVX) announced a $7 billion investment in Venezuela over five years, aiming to boost production to 600,000 barrels per day. The deal follows U.S. negotiations for control of Venezuelan oil reserves. Chevron's three joint ventures have already increased output by 15% this year, with costs expected to remain below $20 per barrel.