Chevron will more than double the number of oil rigs it operates in Venezuela as part of its five-year plan to increase production in the country, Chief Financial Officer Eimear Bonner said at a Barclays conference on Tuesday.
Last week, the U.S. oil major said its joint venture partnerships in Venezuela would invest more than $7 billion to more than double oil output to 600,000 barrels per day by 2031.
The company has long maintained its presence despite years of political upheaval, and the administration of U.S. President Donald Trump has been urging oil producers to invest in Venezuela following the removal of President Nicolas Maduro by U.S. forces.
Once the joint ventures achieve 600,000 bpd, Chevron anticipates production will reach a plateau level between 600,000 to 700,000 bpd, Bonner said.
“The large resource base gives us the opportunity to extend that plateau for five to 10 years, and that’s just the initial recovery from the reservoirs,” she said. “There’s a lot more upside there.”
Chevron also received the right to international arbitration as part of its new contract terms that were signed last week, Bonner added.
The ability to resolve potential disputes under international arbitration courts has been a key requirement cited by other oil producers including ExxonMobil and ConocoPhillips, which exited Venezuela in 2007 when their assets were nationalized and say they are still owed money.
(Reporting by Sheila Dang in Houston; editing by Deepa Babington)