Chevron revealed on Wednesday plans to more than double its oil production in Venezuela within the next five years, backed by a $7 billion investment.
The company has received two more oilfields in the Orinoco Belt, which holds most of Venezuela’s extensive extra-heavy crude reserves. Chevron aims to boost its production in the country to 600,000 barrels daily, up from approximately 280,000 bpd now.
Chevron CEO Mike Wirth said in a statement, “Chevron’s history in Venezuela spans more than a century, and our expanded position reflects our confidence in the country’s deep resource potential and its ability to compete for investment within our portfolio for decades. 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. This progress reflects the dedication of our Venezuelan employees and our long-standing focus on the responsible development of the country’s resources.”
Chevron’s announcement coincides with the U.S. government’s efforts to boost oil production in Venezuela through private investment.
Chevron is the only major U.S. oil company operating in Venezuela through joint ventures with the state-owned PDVSA. While Chevron’s operations in Venezuela have continued uninterrupted for at least 100 years, fellow oil producers ExxonMobil and ConocoPhillips have remained on the sidelines.
Both companies exited the country in 2007 when their assets were nationalized under the previous government of President Hugo Chavez.
Chevron stated that the investment would boost production at its three Venezuelan joint ventures, which have already increased output by 15% this year. The company also indicated that total costs are expected to stay below $20 per barrel.
Chevron shares rose 1% following the announcement.
By CEO NA Editorial Staff
