Venezuela's PDVSA, Chevron agree $2 billion deal

Venezuela's state oil company PDVSA has finalized a $2 billion investment contract with US giant Chevron aimed at boosting production at a joint oilfield. "PDVSA and Chevron have determined the financing conditions of $2 billion by Chevron of Petroboscan," the company said in a statement. PDVSA said Chevron's financing of Petroboscan would last until 2025 and that it would enable a production increase at the Boscan oilfield. Chevron holds 40 percent of Petroboscan, located in the northwest state of Zulia, while PDVSA controls the remaining 60 percent. A 2007 law allows foreign oil companies to operate in Venezuela but only as minority shareholders in PDVSA joint ventures. Venezuela produces an average of three million barrels of oil per day according to official figures but the Organization of the Petroleum Exporting Countries estimates production at 2.3 million barrels per day.