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Chevron expands in Venezuela as new acreage boosts Orinoco Belt plans
Chevron says the move includes more acreage in the Orinoco Belt and plans to invest over $7 billion in the next five years to more than double production to about 600,000 barrels a day.
Chevron is expanding its operations in Venezuela by adding additional acreage in the Orinoco Belt, a step that the company says supports its joint venture plans for higher output, according to Yahoo Finance.
The expansion follows a days-old announcement that the U.S. and Venezuela have entered into a sweeping agreement tied to Venezuela’s untapped oil reserves. Venezuela’s acting President Delcy Rodríguez’s government said the deal covers developing 17 fields with a proven potential of 65 billion barrels, and it includes terms giving the U.S. 55% of the new private company’s effective output, plus an ownership stake and rights to buy oil at cost.
Chevron’s CEO Mike Wirth said the arrangement strengthens Chevron’s portfolio by enabling low-cost oil growth, supporting energy supply, and creating long-term value.
Chevron also described the scale of its plans, saying it expects joint venture investment of more than $7 billion over the next five years, which it projects will more than double production to approximately 600,000 barrels a day versus the current year.