Chevron plans to raise Venezuela oil output to speed debt recovery - report (NYSE:CVX) - Seeking Alpha
Chevron plans to raise Venezuela oil output to speed debt recovery - report (NYSE:CVX) | Seeking Alpha
Chevron plans to raise Venezuela oil output to speed debt recovery - report
Chevron Corporation (CVX) By:
Carl Surran, SA News Editor
3 Comments Sundry Photography/iStock Editorial via Getty Images
Chevron's (NYSE: CVX) renewed oil operations in Venezuela are expected to begin a new phase next month with the aim of accelerating a plan to recover all of the $3B of debt owed by the country by the end of 2025, Reuters reported Wednesday.
Under the oil-for-debt deal Chevron ( CVX) signed last year with Venezuela's PDVSA, it aims to recover $750M in unpaid debts and dividends by year-end, and all $3B outstanding by year-end 2025, according to the report, which also said Chevron has recovered ~$220M so far.
Chevron ( CVX) this year has reactivated crude production at its four joint ventures with PDVSA, exported an average 102K bbl/day, taken a role in procuring supplies and appointed new managers to the JV's boards.
In the second phase, Chevron ( CVX) plans to raise crude production to as much as 160K bbl/day this year and ~200K bbl/day in 2024, the report said.
To optimize exports, Chevron ( CVX) reportedly has proposed to help Venezuela prepare a study on dredging Lake Maracaibo's navigation channel, which would let it load larger tankers, among other steps.
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Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.