Chevron Doubles Down on Venezuela Oil Investment
US oil giant Chevron has confirmed it will expand its operations in Venezuela, investing over $7 billion in the next five years. The move comes after President Donald Trump announced a deal to develop Venezuela's oil reserves and give the Pentagon a stake in the profits.
Chevron, which has had a presence in Venezuela since 1923, plans to more than double its production from 2026 levels to approximately 600,000 barrels per day. The company will operate in the Orinoco Belt, where it already has operations, and has been assigned additional acreage.
The deal has raised concerns about the legitimacy of arrangements made by Venezuela's acting president, Delcy Rodríguez, who lacks authority under the country's constitution to grant 100-year rights over oil fields. Ian Vásquez, vice president for international studies at the Cato Institute, questioned the agreement's legitimacy and predicted it would be undermined by future Venezuelan or American administrations.
Energy Secretary Chris Wright defended the deal, saying it was aimed at increasing confidence for private businesses to invest in Venezuela. However, experts have warned that restoring Venezuela's oil infrastructure will require years of work and tens of billions of dollars.