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Chevron Plans $7 Billion Venezuela Expansion Amid U.S. Oil Push
Chevron is an American oil company expanding its work in Venezuela.
It plans to spend more than $7 billion during the next five years.
The company hopes to produce about 600,000 barrels of oil each day.
Chevron will also develop two oil fields in Venezuela’s Orinoco Belt.
Venezuela has very large oil reserves, but its oil industry has serious problems.
Old equipment, unreliable electricity and environmental issues may make production increases difficult.
The United States wants more access to Venezuelan oil and has relaxed some restrictions on American companies.
More Venezuelan oil could provide supplies for the United States while global markets are unsettled.
Chevron plans to invest more than $7 billion in Venezuela over five years and target production of about 600,000 barrels per day.
The company secured development rights to the Carabobo 1 and Carabobo-2-South-A fields in the Orinoco Belt.
Chevron currently produces about 280,000 barrels per day through three joint ventures with Venezuela’s state oil company.
The expansion comes as the United States eases some sanctions and seeks greater control over Venezuelan oil operations and sales.
Poor infrastructure, unreliable electricity and environmental liabilities could slow efforts to restore Venezuela’s former production levels.
- Who
- Chevron Corporation, Venezuela’s state oil company and the United States government are involved.
- What
- Chevron agreed to updated joint-venture terms, plans more than $7 billion in investment and received rights to develop two oil fields.
- Where
- Venezuela, including the Carabobo fields in the Orinoco Belt.
- When
- The agreement was announced on Wednesday, with investment planned over the next five years.
- Why
- The expansion seeks to increase Venezuelan oil production and give the United States greater access to crude supplies amid global market volatility.
Key facts
- Planned investment
- More than $7 billion over five years
- Production target
- About 600,000 barrels per day
- Current Chevron production
- Approximately 280,000 barrels per day
- Chevron’s Venezuelan ventures
- Three joint ventures with Venezuela’s state oil company
- New development rights
- Carabobo 1 and Carabobo-2-South-A oil fields
- Venezuela’s former output
- About 3 million barrels per day before its prolonged oil-sector collapse
- Strategic Petroleum Reserve
- Roughly 41% of capacity, according to the article
Sources
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