Chevron to invest $7B to double Venezuela oil output

Chevron announced on Wednesday it will invest more than $7 billion over the next five years to more than double its oil production in Venezuela, marking the largest commitment from a U.S. energy major in the country since the Trump administration removed former President Nicolás Maduro from office in January. The expansion, which will boost output to approximately 600,000 barrels per day, comes as the United States moves to increase its influence over Venezuela's vast oil reserves. The Houston-based company said it has agreed to new terms with state oil company PDVSA and secured rights to develop two new oilfields in the Carabobo region within the Orinoco Belt. Chevron's chief executive, Mike Wirth, stated the decision reflects confidence in Venezuela's "deep resource potential" and its ability to compete for investment within the company's portfolio for decades. The company projects total production costs will remain below $20 per barrel. Chevron's current production in the country stands at about 280,000 barrels per day, which already accounts for roughly a quarter of Venezuela's total output of approximately 1.1 million barrels per day.