Chevron Readies New Oil Drilling Push in Venezuela to Boost Output

SEATTLE (Oil Monster): Chevron Corp (CVX.N) plans to add 65,000 barrels per day (bpd) of Venezuelan oil output by the end of 2024 through its first major drilling campaign in the nation since Washington allowed it to restore production clipped by U.S. sanctions, three people familiar with the matter said.

The effort could help Venezuela keep lifting crude production and speed Chevron's goal of recouping $3 billion in unpaid dividends and debt from its projects in the country.

Chevron's joint ventures with Venezuelan state oil company PDVSA now produce some 135,000 bpd and have exported an average 124,000 bpd to the U.S. this year, according to independent estimates and shipping data, near levels they had before Washington imposed sanctions in 2019.

Current oil flows mark a 70%-increase from average output in 2022.

Chevron's recent contribution to Venezuela's crude output has been meaningful as the OPEC-member country tries to stabilize and increase production to pre-sanctions levels.

Almost all of the country's 70,000-bpd output increase so far this year has come from the Chevron-PDVSA projects. But to go further requires large specialized drilling rigs that might be difficult to find in Venezuela, the people said.

Courtesy:  www.reuters.com