Chevron Plans To Boost Venezuelan Oil Output In Debt Repair Deal

Chevron’s oil operations in Venezuela will begin a new phase next month that will boost production with the goal of accelerating a plan to recover the $3bn of debt owed by country by the end of 2025, people close to the matter said.

• Chevron this year has reactivated crude output at its four joint ventures with PDVSA and exported an average 102,500bpd, according to the sources.
• In the second phase, Chevron plans to raise crude production to up to 160kbpd this year and up to 200kbpd in 2024, one of the people said.
• In late April, Chevron told investors its Venezuelan production could rise by 50% this year from current levels of around 100kbpd. A Chevron official told Argus its production was closer to 120kbpd and was on track to reach 200kbpd by the end of this year.
• Washington in November issued a six-month, automatically renewing license to the Chevron to revive largely dormant operations in Venezuela and resume crude exports to the US under an exemption to sanctions on Venezuela. To back up its license application, Chevron last year signed an oil-for-debt swap with Venezuela’s state-run PDVSA.
• Under the deal, Chevron aims to recover some $750 million in unpaid debts and dividends by year-end, and all $3 billion outstanding by the end of 2025, one of the people said. So far, it has recovered some $220 million, the source said.