Chevron Set to Expand Venezuelan Operations Amid US-Venezuela Oil Deal

POLICY WIRE — Washington, USA — Chevron, the second-largest US oil company, is preparing to extend its activities in Venezuela, according to a US official. This announcement follows President Donald Trump’s recent declaration of a significant agreement to develop Venezuela’s oil resources, with the Pentagon securing a share of the profits.

The official, who spoke to reporters under the condition of anonymity as per White House guidelines, revealed that Chevron executives and Energy Secretary Chris Wright are scheduled to visit Venezuela on Wednesday to officially announce the new investment.

Chevron, which currently holds a major presence in Venezuela, has not yet commented on the development. This move comes after the White House confirmed its partnership with North American Blue Energy Partners (NABEP) as part of Trump’s initiative to engage with Venezuela’s oil sector.

Analysts have expressed doubts about the feasibility of the deal, questioning the legal authority of Venezuela’s acting President Delcy Rodríguez to grant 100-year rights over 17 oil fields containing 65 billion barrels of reserves. Concerns also arise over the potential for future administrations in Venezuela or the US to overturn the agreement.

NABEP, owned by Venezuelan businessman Alejandro Betancourt, is set to form a new company with the Pentagon acquiring a 35% stake and the State Department gaining the right to purchase 20% of the produced oil at cost. Despite Betancourt facing past allegations of money laundering, the US administration maintains that no US laws were violated and considers him the only viable partner for the project.

The US government is not providing financial investment but its support is expected to help attract additional investment to boost production. The deal is anticipated to face legal challenges and questions regarding its legitimacy, especially since it was negotiated without the approval of Venezuela’s National Assembly as required by the country’s constitution.

The Trump administration aims to facilitate elections in Venezuela as soon as possible while ensuring stability during the transition from decades of autocratic rule. The Pentagon’s involvement in the deal is through its Office of Strategic Capital, established under former President Joe Biden to invest in technology for national security.

President Trump has shown interest in Venezuela’s oil since the capture of Nicolás Maduro, viewing it as a strategy to reduce dependence on Middle Eastern oil. Chevron has been the sole major American oil company operating in Venezuela since the nationalization of the oil industry in 2007.

Reporting by Policy-Wire (PW)