Chevron (CVX) Stock: Company Commits $7 Billion to Double Venezuela Oil Output
TLDR
- Chevron plans to invest more than $7 billion in Venezuela over the next five years
- The goal is to double Venezuelan oil output to around 600,000 barrels per day
- New agreements expand Chevron’s Petroindependencia joint venture into two new areas in the Orinoco Belt
- Production costs are expected to stay below $20 per barrel
- Venezuelan output has already risen 15% this year across Chevron’s three joint ventures
Chevron said Wednesday it has reached updated terms with Venezuela for its joint ventures in the country, committing more than $7 billion over the next five years. The company’s stock was up 0.42% on the day.
The target is to lift Venezuelan oil production to around 600,000 barrels per day, roughly double current levels. Total production costs are expected to come in below $20 per barrel.
The new agreements expand Chevron’s Petroindependencia joint venture to include two adjacent areas in the Carabobo region of Venezuela’s Orinoco Belt. Chevron already operates three joint ventures in the country: Petroindependencia and Petropiar in the Orinoco Belt, and Petroboscan in the western state of Zulia.
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