Chevron (CVX)’s CEO Say’s Venezuela Needs to Lower Taxes For the Company Invests Fresh Capital

Chevron Corporation (NYSE:CVX) is one of the Best Low Cost Stocks to Buy According to Hedge Funds. According to a May 29 report by Bloomberg, Chevron’s CEO Mike Wirth noted that the company will not invest fresh capital in Venezuela next year unless the country lowers its taxes and royalties on oil production.

​Chevron Corporation (NYSE:CVX) is the only major US oil company operating in Venezuela, and the company currently only reinvests the revenue it makes from Venezuela under a U.S. Treasury-sanctioned program to recover debt owed by state oil company Petroleos de Venezuela SA (PDVSA). The CEO noted that, as the oil price is near $100 a barrel, he expects the debt to be fully repaid in a year.

He added that once the debt is cleared, the company will require new terms to justify further investment. Wirth noted that negotiations are already underway, with Chevron, ExxonMobil, and ConocoPhillips all meeting with Venezuela’s acting government, led by Delcy Rodriguez. Moreover, US President Trump has urged US oil companies to invest $100 billion to rebuild Venezuela’s oil industry, which holds some of the world’s largest reserves. However, executives remain cautious given the country’s history of nationalizations and contract changes.

​Chevron Corporation (NYSE:CVX) is a major integrated energy company. It explores for, produces, and refines crude oil and natural gas. It also transports these resources by pipeline and tanker, manufactures fuels and lubricants, and invests in lower-carbon energy technologies such as renewables and carbon capture.

READ NEXT: 10 Best Stocks to Buy While the Market Is Down and 14 Stocks That Will Double in the Next 5 Years. 

Disclosure: None. Follow Insider Monkey on Google News.