Chevron plans to double oil production in Venezuela with $7 billion investment

Chevron said on Wednesday that it plans to invest $7 billion in Venezuela over the next five years and double its oil production in the country after receiving additional acreage in the crude-rich Orinoco Belt region.

Chevron, the only U.S. oil company operating in Venezuela, said the investment will allow it to boost production to about 600,000 barrels a day, twice its current capacity, according to a statement. 

The announcement comes after President Trump announced a deal on Aug. 28 with Venezuela to create a private joint venture to operate oil fields containing 65 billion barrels of petroleum. Chevron said on Wednesday that it costs the company about $20 per barrel to produce oil in Venezuela.

“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,” Chevron CEO Mike Wirth said in the statement.

Chevron said it has been assigned rights to develop the adjacent Carabobo 1 and Carabobo-2-South-A areas in the Orinoco Belt. 

—This is breaking news and will be updated.