Chevron expected to expand operations in Venezuela, U.S. official says

Chevron, the second-largest U.S. oil company, is expected to announce an expansion of its operations in Venezuela, a U.S. official said Tuesday. The official, who spoke on condition of anonymity, said Chevron officials and Energy Secretary Chris Wray are scheduled to visit Venezuela on Wednesday for the formal unveiling of the new investment.

Chevron did not immediately respond to a request for comment. The announcement comes after the Biden administration confirmed its partnership with North American Blue Energy Partners, or NABEP, as part of efforts to revive Venezuela’s oil industry.

Analysts have expressed skepticism about the initiative, questioning whether Venezuela’s acting President Delcy Rodríguez has the legal authority to grant 100-year rights over 17 oil fields with reserves totaling 65 billion barrels. Concerns also exist about whether future administrations in either country might overturn the agreement.

NABEP, owned by Venezuelan businessman Alejandro Betancourt, is already the second-largest operator in Venezuela. The partnership with the U.S. government would create a new company, with the Pentagon holding a 35% stake and the State Department granted the right to buy 20% of the oil at cost.

Officials defended the decision to partner with Betancourt, who has faced criminal investigations for alleged money laundering in Spain and Switzerland, though no charges have been filed. The U.S. government stated that Betancourt was vetted and found to be in compliance with U.S. laws.

The U.S. is not investing money directly into the new company, the official said, but U.S. backing is intended to attract investment and increase oil production in Venezuela.

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