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Chevron will expand Venezuela operations through $7 billion investment
CNBC • • nation
Key Points:
- Chevron plans to more than double its oil production in Venezuela to 600,000 barrels per day over the next five years through a $7 billion investment, expanding its operations in the Orinoco Belt.
- The company has been assigned two additional oilfields in Venezuela and is the only U.S. oil major currently active in the country via joint ventures with state-owned PDVSA.
- Chevron's expansion aligns with U.S. government efforts to boost Venezuelan oil production through private investment amid deteriorating oil infrastructure caused by years of mismanagement.
- The U.S. government recently secured majority control over 65 billion barrels of Venezuela's crude reserves and is collaborating with private firms and Venezuela's interim government to develop these resources.
- Chevron's stock saw a modest increase in premarket trading following the announcement, reflecting cautious investor reaction.
