Chevron Corporation (NYSE:CVX) shares are up more than 2% during Monday’s premarket session as traders react to plans massive Venezuela investment headlines even with S&P 500 futures down 0.4%.
Eyes Major Venezuela Investment
President Donald Trump recently disclosed an agreement allowing U.S. companies to participate in developing Venezuela’s oil resources. Venezuelan official Delcy Rodríguez said the 25-year deal targets an increase in crude production to 1.5 million barrels per day.
U.S. companies are expected to invest more than $100 billion in Venezuela, while the government could collect over $209 billion in taxes. Chevron, a major U.S. player in Venezuela, is expected to benefit significantly and could announce plans to expand its operations this week, according to The New York Times.
The agreement faces political opposition in Venezuela, while Chevron would need to commit billions of dollars to develop the assets.
