US oil giant Chevron to expand Venezuela operations

What the report says

Chevron said it plans to invest more than $7bn in its Venezuela joint ventures and aims to double oil production in the country to about 600,000 barrels per day over the next five years, according to Al Jazeera’s report based on AP and Reuters. The company, the only major US oil firm with a significant presence in Venezuela, said it received additional acreage in the Orinoco Belt and will expand its Petroindependencia venture into two nearby areas in Carabobo state.

The announcement adds to Chevron’s long-running role in Venezuela’s energy sector, where it has operated since 1923 and currently runs three joint ventures. In the report, Chevron chief executive Mike Wirth said the expanded footprint reflects confidence in Venezuela’s resource base and the company’s ability to develop projects at relatively low cost using existing infrastructure.

The move comes amid wider changes in Venezuela’s oil industry and renewed interest from foreign energy companies. Al Jazeera reported that new contracts involving other firms may also be signed as part of broader oil reforms and efforts to attract investment. Venezuela holds the world’s largest proven oil reserves, but output remains far below historic levels after years of underinvestment, sanctions and production problems at state oil company PDVSA. For Chevron, the expansion signals a larger long-term commitment to a country that remains politically and economically sensitive for international energy businesses.