Chevron may announce expansion of oil operations in Venezuela
U.S. oil company Chevron may soon announce an expansion of its operations in Venezuela. A U.S. official, who spoke on condition of anonymity under White House rules, said this during a briefing.
According to the official, Chevron representatives and U.S. Energy Secretary Chris Wright are expected to visit Venezuela on Wednesday. New investments are to be officially presented there. Chevron did not immediately comment on journalists' request.
Chevron's presence in Venezuela
Chevron is the second-largest oil company in the United States and the only U.S. company with a significant presence in Venezuela. PBS NewsHour reports, citing the Associated Press, on the expected expansion of operations.
The report came after the White House on Monday confirmed a partnership with North American Blue Energy Partners (NABEP) as part of U.S. President Donald Trump's policy to develop Venezuela's oil sector.
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Agreement with NABEP
Analysts are skeptical about this large-scale agreement, noting that restoring oil production in Venezuela could take years. They also doubt whether Venezuela's acting president, Delcy Rodríguez, has the legal authority to grant NABEP rights for 100 years to 17 oil fields with reserves of 65 billion barrels. Analysts also question whether future Venezuelan or U.S. administrations might revoke the agreement.
NABEP, owned by Venezuelan businessman Alejandro Betancourt, is already the second-largest operator in Venezuela. The agreement with the U.S. government provides for the creation of a new company in which the Pentagon will hold a 35% stake, while the U.S. State Department will have the right to buy 20% of the oil produced at cost.
According to several media outlets, Betancourt was mentioned in criminal investigations into alleged money laundering in Spain and Switzerland, but no formal charges were brought against him. A U.S. official said the businessman had been vetted and that the administration had found no violations of U.S. laws. He also said that the U.S. government would not invest funds in the new company, but its support should help attract investment to increase production.
