Chevron will more than double the number of oil rigs it operates in Venezuela as part of its five-year plan to increase production in the country. Chief Financial Officer Eimear Bonner made the announcement at a Barclays conference on Tuesday.

The company also received the right to international arbitration as part of new contract terms signed with the Venezuelan government last week, Bonner added. Last week, Chevron said its joint venture partnerships in Venezuela would invest more than $7 billion to double oil output to 600,000 barrels per day by 2031.

Current production stands at approximately 290,000 barrels per day, all of which is exported to the United States. Once the joint ventures reach 600,000 barrels per day, Chevron anticipates production will plateau between 600,000 and 700,000 barrels per day, Bonner said. She noted that the large resource base offers the opportunity to extend that plateau for five to 10 years through initial recovery from the reservoirs, with additional upside potential.

The agreements signed last week also provide enhanced fiscal, commercial, and legal terms. Total production costs across the expanded operations are expected to remain below $20 per barrel. Chevron's three Venezuelan joint ventures have already grown production by 15 percent year-to-date.

Chevron has maintained operations in Venezuela since 1923 and is the only major U.S. oil company active there following the nationalizations that led ExxonMobil and ConocoPhillips to exit in 2007. The expansion comes after the removal of former President Nicolas Maduro by U.S. forces and amid efforts by the Trump administration to encourage oil producers to invest in the country.

Under the new terms, Chevron's Petroindependencia joint venture received rights to develop additional areas in the Orinoco Belt, including Carabobo regions adjacent to existing operations.