Chevron to Invest Over $7 Billion in Expanding Venezuela Oil Production

Chevron said it will invest more than $7 billion over the next five years to expand its operations in Venezuela's Orinoco Belt, aiming to more than double production to about 600,000 barrels per day. The company received additional acreage in the basin, where it already has a long-standing presence.

"Chevron’s history in Venezuela spans more than a century, and our expanded position reflects our confidence in the country’s deep resource potential," CEO Mike Wirth said in a prepared statement. The expansion follows a recent U.S. administration deal that gives the Pentagon a stake in a portion of Venezuela’s oil reserves and encourages private firms to increase output. Analysts note that Venezuela’s aging infrastructure will require extensive repairs and significant capital before higher output can be realized. The move comes as global oil markets react to heightened geopolitical tensions in the Middle East, which have pushed gasoline prices above $4 per gallon in the United States.