Chevron Corporation (CVX) Expands Stakes in Venezuela Oil Operations

Chevron Corporation (NYSE:CVX) is one of the top S&P 500 stocks by index weight. On April 14, Chevron Corporation (NYSE:CVX) reached an asset swap agreement with Petroleos de Venezuela, S.A. and its subsidiaries. The agreement expands the US energy giant’s stake in Venezuelan heavy oil operations.

Photo by Luis Ramirez on Unsplash

The agreement is poised to expand Chevron’s heavy oil position in Venezuela. The US company has operated in the country since 1923 under the Petroindependencia and Petropiar joint ventures, which operate extra-heavy oil projects in the Orinoco Oil Belt.

Under the terms of the asset swap agreement, Chevron is to receive an additional 13.21% working interest in the Petroindependencia, S.A. joint venture, bringing its total stake to 49%. Petropiar, S.A., a joint venture in which Chevron holds 30% stake, has been tasked with developing the adjacent Ayacucho 8 area in Venezuela’s Orinoco Oil Belt.

In return, Venezuela is entitled to Chevron’s 60% and 100% operated interest in the offshore Plataforma Deltana Block 21 and Block 32 gas licenses, respectively.

Chevron Corporation (NYSE:CVX) is a leading global integrated energy company that produces crude oil and natural gas, manufactures transportation fuels and petrochemicals, and develops technologies for a lower-carbon energy future. They operate across the entire energy value chain—upstream, midstream, and downstream—to provide affordable, reliable, and cleaner energy.

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