On Wednesday, Chevron announced its intention to invest $7 billion in Venezuela over the next five years, aiming to significantly increase its oil production in the nation following the acquisition of additional land in the resource-rich Orinoco Belt.

As the sole U.S. oil company operating in Venezuela, Chevron indicated that this investment could elevate its production capacity to approximately 600,000 barrels per day, effectively doubling its current output, as stated in their press release.

This announcement follows a deal made by President Trump on August 28, which established a private joint venture focused on oil fields estimated to contain 65 billion barrels of crude oil. Chevron noted that its production cost in Venezuela stands at around $20 per barrel.

“With more favorable terms and new acreage, we are enhancing a portfolio that we believe can provide appealing low-cost oil growth, bolster energy supplies, and generate sustainable long-term value,” said Chevron CEO Mike Wirth in the statement.

The company confirmed that it has been granted rights to develop the adjacent Carabobo 1 and Carabobo-2-South-A sectors within the Orinoco Belt.

—This is a developing story and will be updated.

Edited by Alain Sherter