The Daily Journal.— U.S. energy corporation Chevron will significantly expand its operating capacity in Venezuela by “more than doubling” the number of active drilling rigs as part of its five-year production plan, the company’s Chief Financial Officer Eimear Bonner said during a conference organized by Barclays.
The deployment of new equipment supports the investment program the company announced last week, which calls for more than $7 billion in investment through its joint ventures in Venezuela, to increase crude oil production to 600,000 barrels per day (bpd) by 2031.
Bonner said that after reaching the 600,000-bpd target, Chevron expects to stabilize production at a sustained plateau of between 600,000 and 700,000 bpd.
“The large resource base allows us to extend that plateau from five to 10 years, and that is just the initial recovery from the fields,” Bonner said.
“There is much greater growth potential there,” she added.
Bonner also confirmed that the contractual renewal agreed upon last week formally incorporated the right to seek international arbitration in the event of regulatory or operational disputes.
Energy companies have historically sought recognition of foreign arbitration jurisdictions as a condition for committing new capital investments in Venezuela. ExxonMobil and ConocoPhillips, among others, left the country in 2007 following the nationalization of their assets and still maintain outstanding compensation claims.
With information from Reuters
