Chevron has announced agreements with Venezuela establishing updated terms for its joint ventures, paving the way for increased investment, project development and production growth in the country.
The agreements provide enhanced fiscal, commercial and legal
terms aimed at supporting long-term investment.
Chevron has also been assigned additional acreage in
Venezuela’s Orinoco Belt, expanding its existing operations.
The company said the changes support plans by its joint
ventures to invest more than $7 billion over the next five years and more than
double production to approximately 600,000 barrels per day compared with 2026
levels.
Chevron said total costs are expected to remain below $20
per barrel, supported by Venezuela’s large resource base.
“Chevron’s history in Venezuela spans more than a century,
and our expanded position reflects our confidence in the country’s deep
resource potential and its ability to compete for investment within our
portfolio for decades,” said Mike Wirth, Chevron Chairman and Chief Executive
Officer. “With improved terms and additional acreage, we are strengthening a
portfolio that we believe can deliver attractive low-cost oil growth, support
energy supply and create differentiated long-term value. This progress reflects
the dedication of our Venezuelan employees and our long-standing focus on the
responsible development of the country’s resources.”
Under the agreements, Petroindependencia, in which Chevron’s
subsidiary holds a 49 per cent interest, has received rights to develop the
adjacent Carabobo-1 and Carabobo-2-South-A areas in the Orinoco Belt.
The greenfield sites
will expand the joint venture’s operational footprint as it increases
extra-heavy oil production.
The agreement follows a deal announced in April under which
Chevron increased its working interest in Petroindependencia to 49 per cent and
received rights to develop the adjacent Ayacucho 8 area.
Collectively, Chevron’s three Venezuelan joint ventures have
increased production by 15 per cent year-to-date.
“We appreciate the leadership of the Administration, particularly the US Department of Energy, and Secretary Wright’s partnership in helping facilitate the conditions for further investment and growth,” said Wirth. “Continued engagement between government and industry is essential to advancing projects that support energy security, economic growth and continued investment.” -OGN/TradeArabia News Service
