Chevron will begin construction on a new refinery in the Venezuelan oil-rich South American nation of Paraiba, the company announced on Monday.
The refinery, to be built by Enel, is intended to make gasoline for the country’s growing fleet of diesel-electric vehicles, which make up around half of Venezuela’s overall fleet.
It is one of several new oil refineries being built in Venezuela.
Enel is building the refinery in Paraibia as part of a larger project to upgrade its domestic refining facilities.
Chevron has been building its refinery in Venezuela for the past several years.
The refineries, located in Pará, Venezuela’s second-largest city, are one of the largest in the country.
The country has been in recession for several years as the price of oil has plummeted to about $50 per barrel, the lowest in decades.
Venezuelan President Nicolas Maduro has been trying to shore up his domestic economy and curb his country’s spiraling inflation.
Maduro has sought to expand oil production from 30 million barrels per day to nearly 50 million barrels a day, and has repeatedly said he wants to expand exports to Europe and Asia.