Chevron to Double Venezuela Output to 600,000 BPD as U.S., Caracas Ease Investment Terms
Updated
Updated · CNBC · Sep 2
Chevron to Double Venezuela Output to 600,000 BPD as U.S., Caracas Ease Investment Terms
3 articles · Updated · CNBC · Sep 2
Summary
$7 billion in planned investment would lift Chevron's Venezuela production to 600,000 barrels a day within five years, a pace CEO Mike Wirth called rapid for the industry.
August 27 U.S. sanctions and licensing changes, plus Venezuela's revised hydrocarbon laws, improved taxes, royalties and legal protections enough to make the country competitive for Chevron capital again.
Under-$20-per-barrel production costs support the plan, but Wirth said growth still requires rigs from abroad, engineering work, supply chains and steady funding through Chevron's joint ventures with PDVSA.
Chevron remains the only major U.S. oil company operating in Venezuela, while ExxonMobil and ConocoPhillips still cite legal certainty and contract enforceability concerns rooted in the 2007 nationalizations.
The expansion aligns with Washington's broader push to raise Venezuela's output from just over 1.2 million barrels a day to above 1.5 million by early 2027 and more than 2 million by decade-end.