The major American oil company Cheron announced this Wednesday that it will expand its operations in Venezuela, with an investment exceeding 7 billion dollars over the next five years.
The company has set a goal to more than double its production to around 600,000 barrels per day, according to a statement released by the AP agency.
Chevron specified that it has been allocated additional areas in the Orinoco Oil Belt, where it already operates through its joint ventures Petroindependencia, Petropiar, and Petroboscan.
The CEO of the company, Mike Wirth, celebrated the expansion with a message of long-term confidence: "Chevron's history in Venezuela spans more than a century, and our increased presence reflects our trust in the country's abundant resource potential and its ability to compete for investment within our portfolio for decades."
He added: "With better conditions and additional surface area, we are strengthening a portfolio that we believe can provide attractive growth in oil production at a low cost, support energy supply, and create differentiated long-term value."
The announcement coincides with the visit to Caracas by the U.S. Secretary of Energy, Chris Wright, who arrived the day before to participate in the formal signing of the new contract.
Upon landing in Maiquetía, the official stated: "We want to see significant investment from the United States in Venezuela to increase opportunities and prosperity for Venezuelans, Americans, and energy consumers."
The U.S. delegation was received by the Venezuelan Minister of Hydrocarbons, Paula Henao, and the chargé d'affaires of the U.S. in Venezuela, John Barrett.
Few days prior, President Donald Trump unveiled what he described as "the largest oil deal in history," an agreement with the private company North American Blue Energy Partners (NABEP) that grants concessions for 100 years over 17 Venezuelan fields with proven reserves of approximately 65 billion barrels.
Chevron's expansion is independent of the NABEP mega-agreement, although it aligns with the same oil revitalization strategy that Washington is promoting.
Chevron, the second largest oil company in the U.S. and the only one with a significant presence in Venezuela, has been operating in that country since 1923.
Its expansion in the South American nation has been gradual: in January, it deployed a fleet of 11 tankers, in March it tripled its exports to 300,000 barrels per day, and in April it signed agreements to increase its stake in Petroindependencia from 35.8% to 49%.
Venezuela has the largest proven oil reserves in the world—over 303 billion barrels, according to OPEC—surpassing Saudi Arabia, which ranks second with 267 billion.
Despite the optimism expressed by both parties, the situation is not without uncertainties. Analysts have questioned whether the acting president Delcy Rodríguez has the legal authority to grant 100-year concessions on the deposits of the NABEP mega-agreement, and warn that revitalizing Venezuelan production will take years.
Wirth himself had warned in April that any large-scale recovery of the Venezuelan industry relies on the return of skilled workers who emigrated from the country, a challenge that no agreement can resolve on its own.
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