Kathmandu— Chevron, the only US oil firm with a significant presence in Venezuela, announced on Wednesday that it will expand its operations by investing more than $7 billion. The company aims to double its oil production to about 600,000 barrels per day over the next five years through its joint ventures in the South American country.

Expansion Details

Chevron will invest more than $7 billion through its Venezuela joint ventures to double oil production to about 600,000 barrels per day over the next five years. The company has been assigned additional acreage in the Orinoco Belt and will expand its Petroindependencia joint venture to include two adjacent areas in the Carabobo region.

CEO's Statement

Chevron CEO Mike Wirth expressed confidence in Venezuela’s resource potential, stating, “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.” The company’s history in Venezuela spans more than a century.

Broader Context

The expansion comes amid broader efforts by the US government to increase oil output in Venezuela. US President Donald Trump recently unveiled an unprecedented deal involving a fifth of Venezuela’s oil reserves, with the US government taking an equity stake in a private oil firm operating there.

Industry Impact

Chevron is among several companies set to sign energy agreements in Venezuela. Other firms like ENI and Primavera are also expected to expand their operations. The joint venture’s infrastructure is well-established, allowing for development at lower costs compared to greenfield projects.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.