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90ENERGY

Chevron to invest $7 billion in Venezuela to double oil output with US government oversight

⚡ Markets: Potentially significant increase in non-OPEC, non-Russian heavy crude supply over the medium term, which could weigh on oil prices if successful. Bullish for Chevron (CVX) and Eni (E). The deal's success is contingent on extreme political and operational risks in Venezuela.WTIBrentCVXE

US oil major Chevron, along with Italy's Eni, signed deals to invest over $7 billion in Venezuela's oil sector, aiming to more than double production to 600,000 barrels per day within five years. The agreements, overseen by the US Energy Secretary in Caracas, follow a deal giving the US a stake in the country's oil reserves, a move seen as an effort to boost global supply and counter Russian and Chinese influence.

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