US oil major Chevron (NYSE: CVX) has no plans for expanding operations in Venezuela, Chevron chairman David O'Reilly said in a conference call with investors and journalists.
Instead, the company is focusing on restructuring its operations in the Hamaca JV it shares with Venezuela state oil company PDVSA, a Chevron spokesperson told BNamericas.
"Chevron has signed an MOU for the conversion of the Hamaca heavy oil project to a joint Venezuelan company," the spokesperson said. "The terms and conditions of the contract will not be disclosed until final approval by the national assembly, which is expected by August 26."
Chevron reported a second quarter net income of US$5.4bn, up from the US$4.4bn saw in 2Q06, according to a Chevron statement.
The company's global oil-equivalent production was 2.63Mb/d, down 1% from 2Q06, due mainly to the effect of converting the company's operating service agreements in Venezuela into JVs controlled by PDVSA, according to the statement.
PDVSA required at least 60% control of JVs operating in the Orinoco heavy crude belt.
Hamaca, renamed Ameriven, was renamed again this week Petro Piar.
PDVSA controls 70% of the venture after nationalizing the 40% share formerly held by oil major ConocoPhillips (NYSE: COP).
ConocoPhillips pulled out of Venezuela after failing to negotiate the conversion of their assets into PDVSA-controlled JVs.