Chevron is preparing to expand its operations in Venezuela as the Trump administration moves to deepen US involvement in the country’s massive but badly degraded oil industry.
A US official told The Associated Press that Chevron is expected to announce new investments during a visit to Caracas by Energy Secretary Chris Wright. The announcement follows a much larger US-backed agreement involving North American Blue Energy Partners, or NABEP, and Venezuela’s interim government.
The developments signal a potentially significant shift in the US energy relationship with Venezuela, where Chevron is already the only major US oil company maintaining a substantial operating presence.
The Trump administration is pitching the broader strategy as a way to revive Venezuela’s oil production, strengthen energy security and support political stability. But analysts and lawmakers have raised questions about the deal’s economics, legal standing and the enormous amount of capital needed to repair Venezuela’s battered oil infrastructure.
Why is Chevron expanding in Venezuela?
Chevron has maintained a presence in Venezuela through joint ventures with the state-run oil company Petróleos de Venezuela, or PDVSA, even as Washington imposed sweeping sanctions on Caracas.
The company has continued producing crude under US authorization, giving it a position that other major American oil companies do not have.
Now, with the Trump administration pushing foreign investment back into Venezuela’s energy sector, Chevron is preparing to expand further.
Reuters has reported that Chevron is negotiating significant new projects, including expansion in the Orinoco Belt and a possible acquisition of the Monagas North block, which would provide diluents needed to process Venezuela’s extremely heavy crude.
The company’s expansion is separate from the US government’s broader agreement with NABEP, although both are part of the administration’s effort to increase oil production in Venezuela.
What is the Trump-backed Venezuela oil deal?
The broader agreement involves North American Blue Energy Partners, a company owned by Venezuelan businessman Alejandro Betancourt.
Under the arrangement announced by the White House, a newly structured company would receive 100-year rights covering 17 Venezuelan oil fields with around 65 billion barrels of reserves.
The Pentagon’s Office of Strategic Capital would hold a 35% stake in the new company, while the US government would receive the right to purchase 20% of the oil produced at cost.
NABEP says it plans to invest nearly $100 billion to expand production and develop operations in areas including Lake Maracaibo and the Orinoco Oil Belt.
The company has set an eventual production target above 1 million barrels a day.
How is Chevron’s deal different from the NABEP agreement?
The two developments are related to the same broader US policy but are not the same transaction.
Chevron is an established international oil major that has been operating in Venezuela for years through its joint ventures.
NABEP is a private company whose expanded role under the new US-backed structure would give it access to a much larger collection of oil fields.
That distinction matters.
Chevron already has personnel, infrastructure, producing assets and relationships with PDVSA in Venezuela. NABEP’s proposed expansion requires a far broader effort to attract capital and rehabilitate infrastructure across multiple fields.
Analysts have therefore viewed Chevron’s plans as more immediately achievable than some of the ambitions attached to the larger NABEP project. (barrons.com)
How much oil does Venezuela have?
Venezuela possesses the world’s largest proven oil reserves.
The country has roughly 300 billion barrels of proven reserves, according to international energy data.
Much of that resource, however, consists of extra-heavy crude concentrated in the Orinoco Belt.
Extra-heavy oil is more difficult and expensive to produce and transport than lighter crude. It often requires specialized techniques and blending with lighter hydrocarbons or diluents before it can be moved through pipelines and processed efficiently.
That means having enormous reserves does not automatically translate into enormous production.
Venezuela’s output has collapsed from historical highs because of years of underinvestment, sanctions, political instability, equipment failures and declining technical capacity.
Why would Chevron be able to move faster?
Chevron has something many potential investors lack: an existing operational footprint.
The company already works with PDVSA and has experience producing and exporting Venezuelan crude within the framework of US sanctions licenses.
That means it does not have to build an entirely new organization from scratch.
It can potentially expand existing projects, add infrastructure and increase production incrementally.
This is one reason analysts see Chevron as better positioned than companies attempting to enter Venezuela for the first time.
A revival is still likely to take years, however, because Venezuela’s oil industry requires extensive repairs and new investment.
Why is Venezuela’s oil industry so difficult to revive?
The country’s oil infrastructure has deteriorated dramatically.
Years of underinvestment have affected drilling equipment, pipelines, refineries, electricity systems and other parts of the production chain.
The technical challenges are particularly significant for the Orinoco Belt, where the crude is exceptionally heavy.
Restoring production therefore requires far more than simply reopening old wells.
Companies need reliable electricity, functioning pipelines, upgraded processing facilities, spare parts, skilled workers and access to financing.
That is why analysts have warned that even if the new agreements move ahead, meaningful increases in Venezuelan production could take years.
Can the deal actually produce 1 million more barrels a day?
That remains uncertain.
NABEP has said it wants to invest nearly $100 billion and raise production above 1 million barrels a day.
But transforming investment commitments into actual production requires enormous amounts of construction, drilling and infrastructure rehabilitation.
There is also a financial question.
Even if the oil is technically recoverable, investors must determine whether producing it will be profitable after accounting for construction costs, operational expenses, sanctions risks and the quality of Venezuela’s crude.
Chevron’s existing assets give it an advantage, but the broader industry revival is a much larger undertaking.
Why are analysts skeptical?
Analysts have questioned how quickly Venezuela can restore output given the condition of its oil industry.
Some have also questioned whether the proposed 100-year rights over 17 fields will remain politically and legally secure.
Oil projects of this scale often require long-term certainty because companies invest billions of dollars upfront and expect returns over decades.
A change in Venezuelan government policy or a future US administration could potentially alter the arrangement.
That political risk is one of the biggest concerns facing investors.
Is the 100-year agreement legally valid?
The deal has already attracted constitutional questions in Venezuela.
Critics have pointed to provisions requiring legislative approval for certain agreements involving foreign governments.
The Trump administration’s position is that the arrangement is a partnership with NABEP, a private company, rather than a conventional oil concession directly granted by Venezuela to the US government.
That distinction is central to the administration’s legal argument.
Venezuela’s National Assembly subsequently approved the oil agreement on September 1, 2026, reducing one immediate legal objection, although broader questions surrounding the arrangement remain.
Who owns North American Blue Energy Partners?
NABEP is owned by Venezuelan businessman Alejandro Betancourt.
Betancourt has previously faced investigations related to alleged money laundering in Spain and Switzerland, according to media reports.
However, no formal charges were filed against him in those cases.
A US official said Betancourt and NABEP had been vetted by the administration and that authorities concluded they had not violated US law.
The administration has defended the partnership by arguing that Betancourt’s existing presence in Venezuela makes him one of the few realistic private partners capable of helping execute such a large project.
Why is the Pentagon involved in an oil deal?
The Pentagon’s involvement has attracted particular attention.
The administration says the Defense Department’s participation comes through its Office of Strategic Capital, a vehicle designed to make investments in technologies and industrial capabilities relevant to national security.
Under the proposed structure, the office would hold a 35% stake in the new company.
The White House argues that the arrangement is not simply about oil profits. It says expanding access to Venezuelan crude can support US energy security and reduce strategic dependence on other major suppliers.
Critics, however, question whether a military department should hold a direct ownership stake in a foreign oil venture.
Will Americans see cheaper gasoline?
Probably not immediately.
Venezuela may have enormous oil reserves, but increasing production takes time.
Its infrastructure has suffered years of deterioration, and much of its crude is particularly difficult to process.
Analysts therefore say consumers should not expect the deal to produce a sudden drop in US gasoline prices.
Any effect on American fuel markets would depend on how quickly Venezuelan exports increase, global crude prices, refinery capacity and broader supply-demand conditions.
The administration has nevertheless presented increased Venezuelan production as part of a broader strategy to strengthen energy supply.
Why does Chevron’s move matter geopolitically?
Venezuela’s oil industry has long been entangled with global geopolitics.
China and Russia have historically played major roles in the country’s energy sector, while US sanctions sharply restricted American involvement.
The new policy seeks to pull Venezuela back toward the US economic orbit.
Greater participation by Chevron and other Western companies could reduce the influence of Chinese and Russian firms in the country’s oil industry.
It could also give Washington greater leverage over one of the world’s largest pools of crude reserves.
That makes the policy about far more than corporate expansion.
How does this fit with Trump’s broader Venezuela strategy?
Trump’s administration has linked oil development to Venezuela’s political transition.
The White House says restoring economic stability is necessary before the country can move toward credible elections and a more durable political system.
The administration has argued that an abrupt collapse in Venezuela’s economy could produce further instability.
Its strategy therefore involves maintaining working relationships with parts of Venezuela’s existing power structure while attempting to reshape the country’s political and economic future.
That approach has drawn criticism from those who believe economic cooperation could legitimize political actors who should instead face greater pressure.
What happened to Nicolás Maduro?
The current oil strategy follows a dramatic change in Venezuela’s political leadership.
Former Venezuelan President Nicolás Maduro was captured during a US military operation in January and taken to the United States to face federal charges related to alleged narcoterrorism and drug trafficking.
Delcy Rodríguez subsequently became Venezuela’s acting president.
The Trump administration has since dealt with Rodríguez as it seeks to stabilize the country and negotiate the future of its oil industry.
The political transition remains highly contentious, making the long-term stability of major energy agreements difficult to predict.
Could other oil companies follow Chevron?
Possibly.
Reuters has reported that several international companies are moving toward new Venezuelan energy agreements, including India’s ONGC, Italy’s Eni, Colombia’s GeoPark and US-based GE Vernova.
That suggests Chevron’s expansion may be part of a much broader reopening of Venezuela’s energy sector.
The recent changes to Venezuela’s hydrocarbons law have made it easier for foreign companies to operate oil fields, export crude and receive proceeds from sales.
If the trend continues, Venezuela could gradually move from an industry dominated by a struggling state oil company toward a model involving greater participation from international operators.
What happens next for Chevron?
Chevron is expected to formally unveil details of its expanded Venezuelan investment during Energy Secretary Chris Wright’s visit to Caracas.
The precise size and structure of the new commitments will determine how significant the expansion is.
Investors will also be watching whether Venezuela can provide the legal, financial and operational stability required for large-scale projects.
For Chevron, Venezuela offers something difficult to find elsewhere: access to enormous reserves in a country where production has fallen far below its potential.
For Washington, the calculation is broader: revive Venezuelan output, strengthen US access to oil and increase American influence in the country’s economic recovery.
The bottom line
Chevron is preparing to expand its Venezuelan operations as the Trump administration pushes a sweeping plan to revive the country’s oil industry.
The expansion comes alongside a separate US-backed agreement with North American Blue Energy Partners covering 17 oil fields with roughly 65 billion barrels of reserves. The proposed structure gives the Pentagon’s Office of Strategic Capital a 35% stake and guarantees the US access to 20% of the resulting oil at cost.
Chevron has a major advantage over new entrants because it already operates in Venezuela and has established joint ventures with PDVSA.
But reviving Venezuela’s oil sector will not happen overnight. The country’s infrastructure has deteriorated after years of underinvestment, and much of its crude is technically difficult to produce and process.
The biggest questions now are whether the new agreements can attract the billions of dollars required, withstand future political changes and actually deliver a sustained increase in production.
Chevron’s decision to expand suggests that at least one major US energy company believes the opportunity is worth pursuing.
For Venezuela, the stakes are even larger: the country’s vast underground reserves could once again become an economic engine, but only if money, technology and political stability arrive together.
