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Chevron plans $7 billion Venezuela expansion to reach 600,000 bpd
The investment, tied to new agreements that improve Chevron’s fiscal and legal terms, is spread through 2031 and aims to more than double output in Venezuela.
Chevron will invest more than $7 billion in Venezuela over the next five years, under new agreements that provide improved fiscal, commercial and legal terms as well as additional Orinoco Belt acreage, according to OilPrice citing Reuters.
The plan is to more than double Chevron’s Venezuela oil output to about 600,000 barrels per day, up from roughly 290,000 bpd today. Chevron said its three Venezuelan joint ventures will fund the investment through 2031 while keeping total production costs below $20 per barrel.
Chevron’s production in Venezuela is currently exported to the United States. The new acreage includes the Carabobo-1 and Carabobo-2-South-A areas in the Orinoco Belt, within Petroindependencia, where Chevron holds a 49% stake.
OilPrice also noted Chevron increased its Petroindependencia stake to 49% in April and received rights to develop the Ayacucho 8 area next to its Petropiar venture. Its three Venezuelan joint ventures have increased production by 15% so far this year.