Chevron invests over $7 billion to expand Venezuelan oil output
Chevron just announced a massive more than $7 billion investment to ramp up its oil production in Venezuela.
The move will expand its Petroindependencia joint venture into new parts of the Carabobo region, which is located in Venezuela's vast Orinoco Belt.
The news also gave Chevron's stock a small boost, jumping to $212.13.
Venezuelan deals should cut Chevron costs
With fresh agreements from the Venezuelan government, Chevron gets better terms that should bring production costs down to under $20 per barrel.
They'll use existing pipelines and infrastructure for efficiency.
Even though Venezuela has the world's biggest oil reserves, its current output is only 1.25 million barrels a day, well below its peak years ago.
ENI, KEO Capital eye Venezuelan expansion
Chevron isn't alone; other companies like ENI and KEO Capital are also eyeing expansion in Venezuela as part of a broader U.S.-led effort to revive the country's energy sector.
The goal? Help Venezuela boost national production up to 2 million barrels a day by the end of this decade.