Chevron plans $7bn Venezuela expansion as Orinoco output target rises
Chevron’s Venezuelan joint ventures plan to invest more than US$7 billion over five years and lift production to about 600,000 barrels per day.
Chevron has been assigned additional acreage in Venezuela’s Orinoco Belt, expanding the US energy company’s longstanding presence in the country.
The company’s joint ventures plan to invest more than US$7 billion over the next five years and more than double production to approximately 600,000 barrels per day. That figure is a target, rather than a measure of current output.
Yahoo Finance, citing a Barchart report, linked the expansion to a reported US–Venezuela agreement covering the development of 17 fields. Venezuela’s government has claimed those fields have potential reserves of 65 billion barrels, although the available material does not independently verify the agreement or reserve estimate.
Chevron chairman and chief executive Mike Wirth said the deal would strengthen a portfolio capable of delivering low-cost oil growth, supporting energy supply and creating long-term value.
The expansion comes as Chevron reports stronger financial performance. Second-quarter revenue and other income rose 56.3 per cent year on year to US$70.06 billion, while total earnings increased 384.8 per cent to US$12.07 billion. The company’s shares have gained 32 per cent over the past year, according to the source.
