Chevron to Invest $7B, Double Venezuela Output to 600K b/d After US Deal
CVX sits 45% above its 52-week low of $146.49.
Summary
Chevron will invest more than $7 billion over five years and more than double its Venezuela oil production to about 600,000 b/d, expanding its Orinoco Belt footprint under new agreements tied to the recent U.S. deal. The Petroindependencia JV, 49% owned by Chevron, gains the Carabobo-1 and Carabobo-2-South-A areas, with enhanced fiscal and legal terms and total costs below $20/bbl. This follows the earlier BusinessWire report of the agreements but adds concrete capital and output targets. The move deepens Chevron's exposure to Venezuela's vast reserves at a time when its Q2 earnings hit a record $12.1 billion. Watch for further details on project timelines and any additional acreage awards.
At the time of this announcement, CVX was trading at $212.29 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $419.4B. The 52-week trading range was $146.49 to $214.71. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.