Chevron on Wednesday announced plans to more than double its oil production in Venezuela over the next five years through a $7 billion investment that will expand its position in the South American nation. The oil company has been assigned two additional oil fields in the Orinoco Belt, the region that contains most of Venezuela’s vast extra-heavy crude oil reserves. Chevron plans to increase its production in the country to 600,000 barrels per day compared to around 280,000 bpd currently. Chevron is the only major US oil company active in Venezuela through joint ventures with state oil company Petróleos de Venezuela SA. “With improved conditions and additional acreage, we are strengthening a portfolio that we believe can deliver attractive low-cost oil growth, support energy supplies and create differentiated long-term value,” Chevron CEO Mike Wirth said in a statement. Chevron’s announcement comes as the US government pushes to increase oil production in Venezuela through private investment. The country’s oil infrastructure is in poor condition after years of mismanagement by its socialist government. President Donald Trump announced Friday that the United States has secured majority control over 65 billion barrels of Venezuela’s crude oil reserves, about 20% of the 303 billion barrels the country is believed to possess. US Secretary of Energy Chris Wright will visit Venezuela on Wednesday. Washington has partnered with private oil company North American Blue Energy Partners to develop those reserves. Venezuela’s interim government has granted NABEP concessions for 17 oil fields for 100 years. NABEP, in turn, has granted the US Department of Defense a 35% equity stake. The United States captured former President Nicolás Maduro in a military raid in January and took control of Venezuela’s oil exports. Washington has partnered with interim President Delcy Rodríguez, who was vice president during the Maduro government. Chevron shares rose less than 1% in morning trading Wednesday. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
