Oil giant Chevron is planning to expand its operations in Venezuela, a US official said, 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 is the second-largest US oil company and the only one with a major presence in Venezuela. Chevron 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 Donald Trump ’s push to tap into Venezuela’s oil industry.
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 US 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 US 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 US laws were violated.”
At the same time, the official described Betancourt as the only viable partner available for the job, saying that “you have to work with the factors that you have in place.”
The US government is not investing money in the new company, the official told reporters, but its backing will help the company attract investment to ramp up production.
Analysts say that the deal seems certain to face legal challenges and potentially questions of legitimacy. The Trump administration negotiated the agreement with Rodriguez, 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.
But the official said that agreement is a partnership with North American Blue Energy Partners, a private entity which is headquartered in Barbados and has its primary regional office and operations in Caracas, Venezuela.
