Chevron to build on Venezuela position

US-based oil major Chevron has announced that it is extending its operations in Venezuela after securing new terms for its joint ventures.

Chevron says competitive, long-lasting investments will be supported by superior commercial, fiscal and legal provisions in the new agreements. It expects the enhanced terms will support more than $7 billion of investment in joint venture plans over the coming five years.

The company’s established position in the Orinoco Belt will also be bolstered by securing further acreage. Overall, it expects production to rise to around 600,000 barrels per day – more than double the current rate.

Chevron’s CEO and chairman, Mike Wirth, pointed to the company’s presence in the country for over a century. He said the growing position in Venezuela showed Chevron’s faith in the extensive potential resources and their prospects for investment within the company’s portfolio for decades to come.

He added:

“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.”

Chevron, which also makes Texaco grease and lubricant products, has a head start in Venezuela, thanks to previously having a sanctions exemption from the US government. The company says that Venezuela’s extensive resource base, combined with a breakeven price of under $20 per barrel, presents a different way to grow its oil production under its disciplined capital strategy.

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