Chevron to expand Venezuela operations ahead of Energy Secretary's visit
Oil giant Chevron is planning to expand its operations in Venezuela, a S. official said Tuesday, just days after President Donald Trump announced an ambitious deal to develop the nation's oil reserves and give the Pentagon a stake in the profits. The official, who briefed reporters on the expected announcement, said the company's officials and Energy Secretary Chris Wright are expected to visit Venezuela on Wednesday where the new investment will be formally unveiled. The official spoke on condition of anonymity under ground rules set by the White House for the call.
Chevron, the second-largest S. oil company and the only one with a major presence in Venezuela, did not immediately respond to a request for comment.
The announcement comes after the White House confirmed on Monday it is partnering with North American Blue Energy Partners (NABEP) as part of President Trump's push to tap into Venezuela's oil industry.
Details of the deal
The sweeping agreement has been met with skepticism from analysts who say it will take years to revive Venezuela's production. They have questioned whether Venezuela's acting President Delcy Rodríguez has the legal authority to give the company 100-year rights over 17 oil fields with reserves of 65 billion barrels — and whether future Venezuelan or American administrations would overturn the agreement.
NABEP, owned by Venezuelan businessman Alejandro Betancourt, is already the second largest operator in Venezuela. The deal with the S. government would create a new company, where the Pentagon would take a 35% ownership stake, and the State Department would have the right to buy 20% of the oil produced at cost.
The S. administration sought to defend its decision to partner with Betancourt, who has faced criminal investigations for alleged money laundering in Spain and Switzerland, according to multiple media reports. No formal charges were ever filed. The official said that Betancourt was vetted and the administration found that "no S. laws were violated." The official described Betancourt as the only viable partner available for the job, saying "you have to work with the factors that you have in place."
The S. government is not investing money in the new company, the official told reporters. The Pentagon's role in the deal comes through its Office of Strategic Capital, which was created under former President Joe Biden. A second S. official described the agreement as "a very standard deal."
Chevron's investment plans
Chevron Corporation will invest more than USD 7 billion in its Venezuelan joint ventures over the next five years and more than double production to around 600,000 barrels per day, after securing updated terms and additional acreage from Venezuela to support future investment and production growth, as per an official statement by the company.
The agreements provide Chevron's joint ventures with enhanced fiscal, commercial and legal terms aimed at supporting long-term investment and project development, the US energy major said on Wednesday.
The development comes as US Energy Secretary Chris Wright is set to travel to Venezuela for an expected announcement on Chevron's plans to expand its operations.
Wright's visit comes after a recent oil agreement between the US and Venezuela, under which Washington finalised terms for a direct ownership stake in Venezuelan oil fields previously influenced by Chinese and Russian corporations, according to a US official. The official had said the arrangement was aimed at securing long-term US energy supplies and bringing Venezuela's oil resources further into the Western Hemisphere's economic orbit.
Against this backdrop, Chevron said its expanded position in Venezuela would strengthen its portfolio and support future oil growth.
"With improved terms and additional acreage, we are strengthening a portfolio that we believe can deliver attractive low-cost oil growth, support energy supply and create differentiated long-term value," Chevron Chairman and CEO Mike Wirth said.
Political and legal context
The Trump administration negotiated the agreement with Rodríguez, who took power after the January military operation to capture Nicolás Maduro and spirit him to the United States to face federal narcoterrorism and drug trafficking charges. The Venezuelan Constitution states that contracts of this kind with foreign governments must also be approved by the National Assembly, which did not occur.
The official said the agreement is a partnership with NABEP, a private entity which is headquartered in Barbados and has its primary regional office and operations in Caracas, Venezuela. The Trump administration wants elections to happen as quickly as feasible, but is aiming to maintain stability as it helps Venezuela transition following decades of autocratic rule. The official argued that maintaining stability during such transitions "almost invariably requires you to work with elements of the existing structure, even as you are creating a new one."
The arrangement fits into a broader push by President Trump to restore S. business presence in Venezuela, whose oil industry was nationalized under President Hugo Chávez in 2007, prompting major players such as ExxonMobil and ConocoPhillips to leave Caracas. Trump has said, "We have Exxon going in, we have Chevron going in. We have our big oil companies going in," although in January he said he was inclined to leave Exxon out of Venezuela after CEO Darren Woods called the country "uninvestable." A spokesman for Exxon said Tuesday, "Nothing has changed" on the company's position regarding Venezuela.