Chevron to Invest Billions Expanding Venezuela Operations
Energy company Chevron confirmed on Wednesday its plans to expand operations in Venezuela, including an investment of over $7 billion in the next five years.
Chevron confirmed Wednesday it will expand its operations in Venezuela, investing more than $7 billion over the next five years. The oil giant has been assigned additional acreage in the Orinoco Belt, where it holds an established position.
The investment aims to more than double production to approximately 600,000 barrels per day by 2026. Chevron is the only U.S. oil company with a major presence in the country, where its history dates back over a century.
Chevron CEO Mike Wirth stated in a release that improved terms and additional acreage strengthen a portfolio that can deliver low-cost oil growth and long-term value. Venezuela holds the world's largest proven oil reserves.
The announcement follows a U.S. government deal to develop Venezuela's oil reserves. However, analysts have expressed skepticism regarding the timeline for reviving the country's oil industry and the legal standing of the agreements, given its disarray.