Chevron Prepares to Expand Operations in Venezuela Amid US Energy Secretary's Visit

US Energy Secretary Chris Wright is set to visit Venezuela in the coming days as Chevron prepares to expand its operations in the country. The expansion would increase Chevron's productive capacity in Venezuela, a move aimed at attracting more US private-sector investment to the oil industry.

The Trump administration has been seeking to deepen its involvement in Venezuela's energy sector following years of declining production and underinvestment. According to Secretary of State Marco Rubio, Venezuela has roughly twice the proven reserves covered by the recent agreement with North American Blue Energy Partners (NABEP), a privately held Venezuelan oil producer.

Rubio contrasted the new arrangements with Venezuela's previous oil deals under former President Nicolas Maduro, pointing out that Cuba received between $40 billion and $64 billion worth of Venezuelan oil for free or at heavily subsidized prices. He also mentioned that China received discounts of up to $21 per barrel compared with Brent prices.

The new agreements are intended to ensure that oil revenues benefit Venezuela rather than foreign governments or individuals connected to the previous government. The Trump administration has said NABEP plans to invest up to $100 billion in new oil infrastructure in Venezuela, while the agreement gives the US a 35% equity stake in the company's corporate parent.