Chevron, the second-largest U.S. oil company, is set to formally announce an expansion of its operations in Venezuela on Wednesday, with U.S. Energy Secretary Chris Wright joining company officials for the event in Caracas. The announcement follows a series of agreements between the Trump administration and Venezuelan interim authorities, including a 100-year concession for 17 oil fields containing approximately 65 billion barrels of proven reserves, according to multiple reports.
Chevron’s role and new investments
Chevron is currently the only major U.S. oil company with a significant presence in Venezuela, and the expansion marks a deepening of U.S. involvement in the country’s oil sector. A U.S. official, speaking on condition of anonymity under White House ground rules, confirmed that the company’s officials and Wright will travel to Venezuela to formalize the new investment. The official did not provide additional details on the scope of the expansion beyond the concession agreements.
Broader U.S. energy push in Venezuela
The Chevron announcement comes one day after the White House confirmed a separate agreement with North American Blue Energy Partners (NABEP), a privately held oil company, to invest up to $100 billion in rebuilding Venezuela’s deteriorating oil infrastructure. Under the terms of that deal, NABEP has granted the U.S. Department of War’s Office of Strategic Capital a 35% equity stake in its corporate parent, according to a White House statement. The agreement also includes guaranteed low-cost oil off-take for the U.S. government, which the White House described as securing “energy dominance for the next century.”
Trump administration claims and historical context
President Donald Trump stated on Monday that U.S. oil companies, including ExxonMobil, are returning to Venezuela nearly two decades after being forced out during a nationalization drive. Trump claimed the deals would allow the U.S. to control 65 billion barrels of proven oil reserves, expanding the country’s territorial reserves from roughly 46 billion barrels. He added that the agreements were secured “at zero cost to the United States.” However, ExxonMobil CEO Darren Woods had previously described Venezuela as “uninvestable” due to legal and commercial uncertainties, according to reports from January.
Reactions and concerns
Critics of the agreements have raised questions about the legitimacy of the deals. Steve Hanke, a professor of applied economics at Johns Hopkins University and former advisor to former Venezuelan President Rafael Caldera, described the agreements as “reached in secrecy, with no public debate, and signed under duress.” Hanke also expressed concerns about the transparency of the Venezuelan government, stating, “Caracas is a sunny place inhabited by shady characters who are connected to the current socialist government, and we do not know whether they are parties to the deal or to possible side deals.” Hanke concluded that the deal is “illegitimate and probably illegal.”
Officials from Chevron, the Department of Energy, NABEP, and the Venezuelan government did not immediately respond to requests for comment on the agreements or the concerns raised by critics.