U.S.-Venezuela Oil Deal Draws Corporate Participation as Chevron, Eni and Others Sign Agreements

[Financial News] Following a large-scale oil agreement between the United States and Venezuela, global energy companies including Chevron and Eni signed a series of agreements with Venezuela on the 2nd (local time) to expand oil projects. They are joining efforts to increase investment in the country.
According to foreign media reports, the companies signed project agreements to expand crude oil production at Venezuela's presidential palace in Caracas that day.
Chevron plans to invest more than $7 billion through its joint venture in Venezuela and increase crude oil production to about 600,000 barrels per day within five years, roughly double the current level.
Mike Wirth, Chevron's chairman and chief executive officer (CEO), said, "This expansion reflects our confidence in Venezuela's abundant resource potential and its ability to become a competitive investment opportunity in Chevron's portfolio for decades to come."
Eni also signed an agreement with Venezuela that day to expand its oil projects.
At the signing ceremony, Eni CEO Claudio Descalzi said, "What we need is not simply to sign papers, but crude oil production."
In addition to Chevron and Eni, power company GE Vernova, energy company Primavera, and Denver-based oilfield services provider Aspect also signed agreements that day.
The agreements are separate from the 'oil deal' that the Trump administration recently reached with the Venezuelan government. The deal centered on the United States securing access to one-fifth of Venezuela's oil reserves.
Venezuela's current crude oil production is about 1.25 million barrels per day, far below the more than 3 million barrels per day it produced 20 years ago. The country's oil industry has suffered a prolonged downturn due to insufficient investment, poor management, and U.S. sanctions.
U.S. Secretary of Energy Chris Wright projected that Venezuela's total crude oil production would reach 2 million barrels per day by around 2030.


[email protected] Lee Seok-woo, International Affairs Specialist Reporter