Chevron, Eni announce major oil investments in Venezuela

US oil major Chevron, Italy's Eni and other foreign energy companies have committed to major project expansions aimed at boosting Venezuela's oil production, Reuters reported.

The agreements were signed in Caracas at a ceremony attended by Venezuela's interim President Delcy Rodriguez and US Energy Secretary Chris Wright.

The deals are separate from a recently announced agreement between Caracas and Washington giving the United States access to 17 Venezuelan oilfields. Most concern projects negotiated with Venezuela's Oil Ministry and state oil company PDVSA under new terms introduced by an oil reform approved in January.

Venezuela currently produces about 1.25 million barrels of oil per day, well below its peak of around 3 million bpd in the late 1990s. The United States is backing an investment plan worth about $100 billion that officials say could double the country's output in the coming years.

Chevron plans to invest more than $7 billion to double its Venezuelan production to around 600,000 bpd over the next five years by expanding its joint ventures with PDVSA.

Eni, meanwhile, plans to invest $1.5 billion in the Junin 5 heavy-oil area of the Orinoco Belt. The company said its existing joint venture with PDVSA would transition to a 25-year production-sharing contract.

Junin 5 currently produces about 12,000 bpd, while Eni is targeting total Venezuelan oil production of 400,000 bpd from its projects by the end of the decade.

GE Vernova also signed an alliance covering Venezuela's power sector, which has struggled with electricity shortages affecting households and key industries.

Other agreements included an oilfield development deal with energy company Primavera and an exploration agreement with Denver-based Aspect Holdings.

Stabil.Az