Chevron JV Launches New Drilling Campaign In Venezuela: Report

The U.S. oil major company Chevron‘s CVX joint venture with Venezuelan state-owned oil company PDVSA, Petroindependencia, launched a new drilling campaign.

Notably, in October, the U.S. eased oil sanctions on Venezuela following an agreement between its government and its political opposition, reported Reuters.

Chevron holds a separate authorization to operate oil fields in Venezuela, a member of the Organization of the Petroleum Exporting Countries (OPEC). 

The sanctions relief aids in higher Venezuelan exports, thereby leading the way to boost output.

As per the report in September last year, Chevrom proposed adding 65,000 barrels per day (bpd) to its Venezuela crude output by the end of this year, and the new drilling program is part of that planned expansion.

PDVSA said, “The CMI14 well, the first of 17 planned in the business plan this year, represents an important advance for the increase in production by this joint business,” 

Also Read: Chevron Halts Biodiesel Production Amid Market Challenges, Unveils Green Hydrogen Initiative

Last month, Chevron and JX Nippon collaborated to explore CO₂ export from Japan to CCS projects in Australia and the Asia Pacific region.

Investors can gain exposure to the stock via SPDR Select Sector Fund – Energy Select Sector XLE and IShares U.S. Energy ETF IYE.

Price Action: CVX shares closed higher by 0.85% at $159.08 on Monday. 

Photo by Jonathan Weiss on Shutterstock