A U.S. official said Tuesday that oil giant Chevron is expected to announce its plan to expand operations in Venezuela shortly.
The official, who briefed reporters on the anticipated announcement, indicated that company officials and Energy Secretary Chris Wright are scheduled to visit Venezuela on Wednesday for the formal unveiling of the new investment. The official spoke under anonymity, adhering to White House guidelines for the call.
Chevron is noted as the second-largest U.S. oil company and holds the sole major presence in Venezuela. Chevron did not provide an immediate comment when asked.
This announcement follows confirmation from the White House on Monday regarding its partnership with North American Blue Energy Partners (NABEP) as part of President Donald Trump’s initiative to utilize Venezuela’s oil industry.
Analysts have expressed skepticism toward this broad agreement, suggesting that reviving Venezuela’s production will require several years. They have raised questions about whether acting President Delcy Rodríguez possesses the legal authority to grant the company 100-year rights over 17 oil fields containing reserves of 65 billion barrels—and whether subsequent Venezuelan or American administrations might nullify the agreement.
NABEP, which is owned by Venezuelan businessman Alejandro Betancourt, is already the second largest operator in Venezuela. The arrangement with the U.S. government would establish a new company where the Pentagon would hold a 35% ownership stake, and the State Department would possess the right to purchase 20% of the oil at cost.
The U.S. administration sought to justify its decision to partner with Betancourt, who has been subject to criminal investigations in Spain and Switzerland concerning alleged money laundering, according to various media reports. No formal charges were ever brought against him. The official stated that Betancourt underwent vetting and the administration determined that “no U.S. laws were violated.”
The official informed reporters that the U.S. government is not injecting capital into the new company; however, its support will assist the company in attracting investment necessary to increase production.