U.S. oil major Chevron (CVX) has announced plans to invest $7 billion U.S. in Venezuela and more than double its oil production in the South American country.
Chevron has been given two additional oilfields in Venezuela’s Orinoco Belt, the region that contains most of the nation’s heavy crude reserves.
Management at Chevron said they plan to increase the company’s production in the country to 600,000 barrels per day compared with around 280,000 barrels per day currently.
Chevron is the only major U.S. oil company that’s currently active in Venezuela. Other American oil companies have pulled out of the country over the past two decades.
News that Chevron is expanding its production comes as the U.S. government pushes to increase oil production in Venezuela.
U.S. President Donald Trump recently announced that the U.S. has secured control over 65 billion barrels of Venezuela’s crude reserves.
Venezuela has the largest proven crude oil reserves in the world with about 303 billion barrels. However, the country’s energy infrastructure is in disrepair after years of mismanagement.
The interim government in Venezuela has given the U.S. 100-year concessions on 17 oilfields and granted the U.S. Defense Department a 35% equity stake in its crude oil industry.
Earlier this year, the U.S. military captured Venezuela President Nicolás Maduro and jailed him in America.
CVX stock has risen 30% over the last 12 months to trade at $211.05 U.S. per share.
