Chevron is set to expand its operations in Venezuela following a new deal announced by the Trump administration to develop the country’s oil reserves, which hold an estimated 65 billion barrels. The expansion was confirmed by a U.S. official on Tuesday, with Chevron and Energy Secretary Chris Wright scheduled to visit Venezuela on Wednesday to formally unveil the investment, according to fortune.com.
The deal involves a partnership between the U.S. government and North American Blue Energy Partners (NABEP), owned by Venezuelan businessman Alejandro Betancourt. NABEP has been vetted by U.S. officials ahead of the agreement, which grants 100-year rights over 17 oil fields in Venezuela. The announcement follows President Donald Trump’s push to re-engage U.S. oil companies in Venezuela’s energy sector, as reported by fortune.com.
Analysts have expressed skepticism about the deal’s viability, citing the lengthy process required to revive Venezuela’s oil production. Questions have also been raised about the legal authority of Venezuela’s acting President Delcy Rodríguez to grant such long-term rights and concerns over whether future administrations in either country might overturn the agreement. Chevron remains the only major U.S. oil company with a significant presence in Venezuela, according to fortune.com.
The formal announcement and unveiling of Chevron’s expanded investment in Venezuela are scheduled for Wednesday, marking a significant step in U.S. efforts to tap into Venezuela’s vast oil reserves under the Trump administration’s policy framework, per fortune.com.