Key facts
- Chevron will double its drilling rigs in Venezuela as part of a five-year expansion.
- The company plans to invest more than $7 billion through 2031 in its Venezuelan operations.
- The expansion aims to increase production to approximately 600,000 barrels per day.
- Production costs are projected to remain below $20 per barrel.
- Chevron received additional acreage in the Orinoco Belt, including areas assigned to Petroindependencia.
Chevron is set to significantly expand its operations in Venezuela, planning to double its drilling rigs over the next five years with an investment exceeding $7 billion. The expansion aims to boost production to approximately 600,000 barrels per day, with projected costs below $20 per barrel. This move follows the signing of new contract terms with Venezuela, which include access to international arbitration, a crucial provision given the country's history of nationalizations and contract disputes.
Under the new agreement, Chevron will also gain access to additional acreage in the Orinoco Belt, including areas within the Petroindependencia venture, in which it holds a 49% stake. Chevron has maintained a presence in Venezuela since 1923, operating through joint ventures with PDVSA even after other major oil companies departed due to nationalizations. This existing infrastructure and operational base provide a foundation for the planned expansion.
The expansion coincides with a broader U.S.-Venezuela oil agreement, which granted North American Blue Energy Partners long-term concessions for fields with substantial proven reserves. Chevron's strategy focuses on leveraging its established operations and proximity to U.S. refineries for its increased output.