Chevron Corp. intends to finance Venezuelan oil investments with cash from oil sales rather than committing new capital to the country, Chief Financial Officer Eimear Bonner said in an interview.
Chevron plans to increase its Venezuelan production by 50% within the next two years but will do so without changing overall capital spending, said Bonner, who’s Chevron career has included tours of duty from Thailand and the UK to Central Asia.
The Venezuelan growth plan requires additional authorizations from the US Treasury, she noted.
“Our model is a venture-funded model,” Bonner said. “Any change in our investment levels or capital levels, we’d look at this like any asset opportunity or investment opportunity that we have in the portfolio. It would need to have an appropriate return on investment.”
The only oil supermajor operating in Venezuela, Chevron’s cautious stance on injecting fresh capital is a reality check on how quickly the nation’s oil industry can be revived. While it has the world’s biggest reserves on paper, socialist regimes leaders have a history of nationalizing oilfields drilled by US and European operators.
Chevron currently produces about 250,000 barrels a day from joint ventures with state-owned Petroleos de Venezuela SA. The country accounts for about 2% of Chevron’s annual cash flow.
Bonner welcomed Acting President Delcy Rodriguez’s efforts to reform the country’s nationalist oil policies in moves that promises to lower taxes and permit more foreign investment.
“It appears that those reforms are working toward ensuring all the things that would make Venezuela an attractive place for future investment: rule of law, commercial stability, competitiveness,” Bonner said. “It seems like a step in the right direction.”
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
element
var scriptTag = document.createElement(‘script’);
scriptTag.src = url;
scriptTag.async = true;
scriptTag.onload = implementationCode;
scriptTag.onreadystatechange = implementationCode;
location.appendChild(scriptTag);
};
var div = document.getElementById(‘rigzonelogo’);
div.innerHTML += ” +
‘
‘ +
”;
var initJobSearch = function () {
//console.log(“call back”);
}
var addMetaPixel = function () {
if (-1 > -1 || -1 > -1) {
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
} else if (0 > -1 && 86 > -1)
{
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
}
}
// function gtmFunctionForLayout()
// {
//loadJS(“https://www.googletagmanager.com/gtag/js?id=G-K6ZDLWV6VX”, initJobSearch, document.body);
//}
// window.onload = (e => {
// setTimeout(
// function () {
// document.addEventListener(“DOMContentLoaded”, function () {
// // Select all anchor elements with class ‘ui-tabs-anchor’
// const anchors = document.querySelectorAll(‘a .ui-tabs-anchor’);
// // Loop through each anchor and remove the role attribute if it is set to “presentation”
// anchors.forEach(anchor => {
// if (anchor.getAttribute(‘role’) === ‘presentation’) {
// anchor.removeAttribute(‘role’);
// }
// });
// });
// }
// , 200);
//});
