chevronpdvsa

Chevron will finance its investment in Venezuela with money generated by its 3 joint ventures

Chevron is the second-largest oil company in the United States and the only one with a major presence in Venezuela.

The CEO of the U.S. oil company, Mike Wirth, said that the firm will fund its expansion in Venezuela with the money generated by the three joint ventures it has with Petróleos de Venezuela S.A. (PDVSA).

“ We will fully align with the cash-generation capacity of those companies, regardless of external capital,” he said.

Chevron plans to invest US$7 billion over the next 5 years in Venezuela in order to double its oil production, according to Reuters.

This would be the largest financial commitment the oil company has made to date, and it is an initiative led by the U.S. government to restart the nation’s hydrocarbons sector.

Chevron said it will develop two giant oil fields that belong to the Orinoco Oil Belt: Carabobo 1 and Carabobo-2-Sur-A, which are located next to Petroindependencia, the joint venture company with Petróleos de Venezuela S.A. (PDVSA).

Oil price increase
On another matter, Mike Wirth said that the oil reserves that limited the increase in oil prices at the start of the war between the U.S. and Iran “have been depleted,” meaning the conflict could push the value of hydrocarbons even higher in the coming months.

“It’s harder to imagine a scenario in which prices moderate quickly. I believe the risks continue to point upward over the next few months,” he said.

#venezuela #EEUU #Chevron #iran #ChevronPDVSA $CVXon $BZ $CL