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Chevron Unveils USD7B Venezuela Oil Investment Plan
(MENAFN) US energy major Chevron said Wednesday that its Venezuelan joint ventures intend to invest more than $7 billion over the next five years as they seek to more than double crude production to roughly 600,000 barrels per day.
The company said newly reached agreements with Venezuela provide more favorable fiscal, commercial and legal conditions aimed at supporting long-term investment, developing projects and expanding production.
As part of the agreements, Chevron was granted additional acreage in the Orinoco Belt, a major Venezuelan oil-producing region where the company already produces extra-heavy crude.
“With improved terms and additional acreage, we are strengthening a portfolio that we believe can deliver attractive low-cost oil growth, support energy supply and create differentiated long-term value,” Chairman and CEO Mike Wirth said.
Chevron said its Venezuelan operations currently have total costs of less than $20 per barrel, underscoring the low-cost profile of its production activities in the country.
The Petroindependencia joint venture, in which Chevron owns a 49% interest, was given development rights for the neighboring Carabobo-1 and Carabobo-2-South-A areas under the latest agreements.
The move builds on an agreement reached in April that raised Chevron’s stake in Petroindependencia to 49% while also granting the company rights to develop the Ayacucho 8 area, which is adjacent to its Petropiar joint venture.
Production across Chevron’s three Venezuelan joint ventures has climbed 15% since the start of the year.
The announcement comes after US President Donald Trump revealed a separate agreement under which Washington would gain “majority control” over more than 65 billion barrels of Venezuela’s proven oil reserves.
Under that arrangement, North American Blue Energy Partners secured 100-year concessions covering 17 oilfields and plans to invest as much as $100 billion in Venezuela’s energy infrastructure.
According to the White House, the company also granted the US government a 35% stake in its parent company and the right to purchase 20% of its production at cost.
Chevron, which has maintained a presence in Venezuela since 1923, is among the country’s leading private energy companies.
The company said newly reached agreements with Venezuela provide more favorable fiscal, commercial and legal conditions aimed at supporting long-term investment, developing projects and expanding production.
As part of the agreements, Chevron was granted additional acreage in the Orinoco Belt, a major Venezuelan oil-producing region where the company already produces extra-heavy crude.
“With improved terms and additional acreage, we are strengthening a portfolio that we believe can deliver attractive low-cost oil growth, support energy supply and create differentiated long-term value,” Chairman and CEO Mike Wirth said.
Chevron said its Venezuelan operations currently have total costs of less than $20 per barrel, underscoring the low-cost profile of its production activities in the country.
The Petroindependencia joint venture, in which Chevron owns a 49% interest, was given development rights for the neighboring Carabobo-1 and Carabobo-2-South-A areas under the latest agreements.
The move builds on an agreement reached in April that raised Chevron’s stake in Petroindependencia to 49% while also granting the company rights to develop the Ayacucho 8 area, which is adjacent to its Petropiar joint venture.
Production across Chevron’s three Venezuelan joint ventures has climbed 15% since the start of the year.
The announcement comes after US President Donald Trump revealed a separate agreement under which Washington would gain “majority control” over more than 65 billion barrels of Venezuela’s proven oil reserves.
Under that arrangement, North American Blue Energy Partners secured 100-year concessions covering 17 oilfields and plans to invest as much as $100 billion in Venezuela’s energy infrastructure.
According to the White House, the company also granted the US government a 35% stake in its parent company and the right to purchase 20% of its production at cost.
Chevron, which has maintained a presence in Venezuela since 1923, is among the country’s leading private energy companies.
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