Chevron announced Wednesday that it will expand its operations in Venezuela, a move that follows a recent U.S. initiative to develop the South American nation's oil reserves. The oil giant has been assigned additional acreage in the Orinoco Belt, where the company already has an established presence.
Under joint venture plans, Chevron intends to invest more than $7 billion over the next five years, with the goal of more than doubling production to approximately 600,000 barrels a day by 2026. The announcement came shortly after a U.S. official, speaking on condition of anonymity, briefed reporters on the expected expansion and stated that Chevron officials and Energy Secretary Chris Wright were scheduled to visit Venezuela to formally unveil the new investment.
Chevron, the second-largest U.S. oil company, is the only American company with a significant operational footprint in Venezuela. The company has maintained a presence in the country since 1923. Its existing joint ventures include Petroindependencia and Petropiar, S.A., which manage extra-heavy oil projects in the Orinoco Oil Belt, and Petroboscan, S.A., located in Zulia State in western Venezuela.