Chevron is committing $7 billion through joint ventures to more than double its Venezuela oil output

Chevron $CVX announced Wednesday that it will invest more than $7 billion through its joint ventures in Venezuela over the next five years, a commitment the company says will more than double its oil production in the country.

As part of the agreement, Chevron is receiving new acreage in the Orinoco Belt, a region where the company has long operated alongside state oil firm PDVSA through a series of joint ventures. The company's target output is roughly 600,000 barrels per day, more than twice its current rate of about 280,000 bpd, the company said.

"With improved terms and additional acreage, we are strengthening a portfolio that we believe can deliver attractive low-cost oil growth, support energy supply and create differentiated long-term value," Chevron CEO Mike Wirth said in a statement.

Chevron is the only large U.S. oil company with an active presence in Venezuela. Dating back to 1923, its footprint in the country is organized through three joint ventures — Petroindependencia, Petropiar, S.A., and Petroboscan, S.A. — with operations spanning extra-heavy crude production in the Orinoco Oil Belt and fields in Venezuela's western Zulia State.

The announcement follows a deal framed by President Donald Trump as a diplomatic and energy win. According to the Associated Press, the White House had been expected to formally unveil the new investment on Wednesday, with Chevron officials and Energy Secretary Chris Wright traveling to Venezuela for the occasion. The official, who requested anonymity in keeping with White House ground rules for the briefing, was cited by the Associated Press.

Chevron and Halliburton $HAL were close to deals committing billions of dollars to Venezuelan oil fields, with executives from several oil-and-gas companies set to travel to Caracas to sign production agreements. Halliburton is separately in discussions to supply equipment and services to Venezuelan oil producers.

The wider push to expand U.S. involvement in Venezuela's energy sector has drawn interest from multiple companies. Hunt Oil Company and SLB signed agreements with Venezuela earlier this month, among the first major deals between American oil firms and the country in close to two decades. ExxonMobil $XOM and ConocoPhillips $COP have held off on deals while continuing to seek billions of dollars in restitution after the late Venezuelan leader Hugo Chávez nationalized their assets in 2007.

Venezuela's current total output stands at about 1.1 million barrels per day. The country holds some of the world's largest proven oil reserves, concentrated in the Orinoco Belt.