Chevron plans to more than double the number of oil rigs it operates in Venezuela, CFO Eimear Bonner said at a Barclays conference on September 8, part of a five-year plan to increase output. The rig expansion follows Chevron's announcement that its joint venture partnerships in Venezuela would invest more than $7 billion to more than double oil output to 600,000 barrels per day by 2031, up from roughly 290,000 barrels per day currently produced by its three Venezuelan JVs, all of which is exported to the United States. The move builds on Chevron's longstanding presence in Venezuela, where it has operated since 1923 and was the only American oil major to keep operating under a special US license despite sanctions. It comes alongside a larger agreement between Washington and Caracas announced this month that gave the US majority control over around 20% of Venezuela's proven crude reserves, with the White House inviting American oil companies to revive and modernize the country's oil infrastructure. Chevron expects to keep total production costs below $20 per barrel, though the company still faces political instability, nationalization risk, and dilapidated oil infrastructure in the country.
Chevron CorpChevron plans to more than double its Venezuela rigs and its JVs will invest over $7 billion to double output to 600,000 bpd by 2031.
