Chevron, the second-largest U.S. oil company and the only major American producer remaining in Venezuela since 2007, announced a $7 billion deal to expand its operations in the country. This investment will focus on developing two additional oil fields in Venezuela's Orinoco Belt, near its existing Petroindependencia joint venture, in which Chevron holds a 49% stake. The goal is to more than double its current output, aiming for approximately 600,000 barrels per day within five years.
This announcement coincided with U.S. Energy Secretary Chris Wright's arrival in Caracas and follows the Venezuelan parliament's approval of a separate, larger agreement. This broader deal grants the U.S. control over a fifth of Venezuela's oil reserves through North American Blue Energy Partners (NABEP), a company where the U.S. Department of War's Office of Strategic Capital will take a 35% stake, and the U.S. State Department will have the right to purchase 20% of output at production cost. NABEP, owned by Venezuelan businessman Alejandro Betancourt, will operate 17 oil fields with estimated reserves of 65 billion barrels under 100-year rights.
The overall expansion of U.S. involvement in Venezuela's oil sector has been met with skepticism by some analysts, who estimate it could take anywhere from one to ten years for new barrels to reach the market. They also question the legal authority of Venezuela's acting President Delcy Rodríguez to grant such long-term rights without the National Assembly's full review, which some opposition members protested by abstaining from the vote. Despite these concerns, U.S. officials state their backing alone, not direct financial investment, will attract the necessary capital to revive production and counter Russian and Chinese influence in the region.
