Chevron announced an agreement to expand its oil production in Venezuela. This deal aims to more than double current production levels to 600,000 barrels per day.
The company revealed that the expansion will occur through a joint venture. Chevron’s subsidiary will hold a 49 percent interest in this venture. Over the next five years, the joint venture plans to invest more than $7 billion.
This agreement grants Chevron additional land in Venezuela’s Orinoco Belt. This area contains significant heavy crude oil reserves, where Chevron already has a strong presence. Currently, Chevron is the only major U.S. oil company operating in Venezuela. Other companies, like ExxonMobil and ConocoPhillips, exited in 2007.
The Trump administration recently announced plans to work with North American Blue Energy Partners, a Venezuelan oil company. This partnership aims to access 21 percent of Venezuela’s estimated oil reserves.
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