Chevron to Invest $7 Billion to Boost Venezuelan Output

Summary

Bloomberg's Tyler Kendall reports on Chevron's $7 billion plan to more than double its Venezuelan oil output over five years, the largest private-sector commitment in the U.S.-led effort to revive Venezuela's oil industry. Additional deals from Shell and Eni are expected, while the U.S. government is taking an equity stake in a private company with a 100-year lease on fields holding 65 billion barrels. Venezuelan production remains around 1.1 million barrels per day, with questions about scalability.

• Senior U.S. officials frame the announcements as a push for private investment in Venezuela.
• Chevron is committing $7 billion next to its existing operations with state-owned PDVSA.
• Shell and Eni are expected to announce additional deals.
• Venezuelan oil production is about 1.1 million barrels per day, similar to North Dakota.
• Private-sector deals are separate from a U.S. government deal involving an equity stake and 100-year lease.
• The government-linked lease covers 17 strategic fields with an estimated 65 billion barrels of oil.
• Scalability of the investment remains uncertain.
• U.S. Energy Secretary Christopher Wright is holding a signing ceremony with interim president Delcy Rodriguez.