Chevron Bets $7B on Doubling Venezuela Output

Chevron, the second-largest US oil company, said Wednesday it will invest more than $7 billion in Venezuela over the next five years and more than double its production there — the first big corporate move since President Donald Trump announced a deal to develop the country's oil reserves and hand the Pentagon a stake in the profits.

The company said it reached updated terms with Venezuela on its three joint ventures, targeting output of roughly 600,000 barrels per day.

Chevron is the only major US oil company with a significant presence in Venezuela.

What Chevron Agreed To

The new agreements give Chevron what it called enhanced fiscal, commercial and legal terms, plus additional acreage in Venezuela's Orinoco Belt, according to Reuters.

Its Petroindependencia joint venture, in which Chevron holds a 49 percent stake, won rights to develop two new areas in the Orinoco Belt.

Chevron said output at its three Venezuelan joint ventures has already risen 15 percent so far this year, and that total costs are expected to stay below $20 per barrel.

The company has operated in Venezuela since 1923. Petroindependencia and Petropiar operate in the Orinoco Belt; Petroboscan operates in western Zulia state.