Chevron plans $7bn Venezuela investment as it expands Orinoco position.

Source: Sharecast

Expanding its position in Venezuela’s Orinoco Belt, the company said new agreements included enhanced fiscal, commercial and legal terms intended to support long-term investment and project development.

Chevron has also been assigned additional acreage in the Orinoco Belt, with its 49%-owned Petroindependencia joint venture receiving rights to develop the adjacent Carabobo-1 and Carabobo-2-South-A areas.

The group, which has operated in Venezuela since 1923, said its Venezuelan assets have total costs of less than $20 per barrel, while production across its three joint ventures in the country has risen 15% year to date.

Chairman and chief executive Mike Wirth said: “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 said the latest expansion followed an agreement in April under which it increased its working interest in Petroindependencia to 49% and secured development rights over the Ayacucho 8 area.

Wirth added that the company’s expanded position reflected its confidence in Venezuela’s “deep resource potential” and its ability to compete for investment within Chevron’s portfolio for decades.

Chevron shares were up 0.2% at $211.51 by 1618 BST.