Chevron Expands in Venezuela Amid US-Government Backed Deal
Oil giant Chevron is expanding its operations in Venezuela as part of a deal between the US government and North American Blue Energy Partners (NABEP), a private entity with ties to Venezuelan businessman Alejandro Betancourt. The agreement, announced by a US official on Tuesday, includes a 35% ownership stake for the Pentagon and allows the State Department to buy 20% of the oil produced at cost.
The deal comes after President Donald Trump's announcement that his administration would partner with NABEP as part of its push to tap into Venezuela's oil industry. The agreement has been met with skepticism from analysts, who question whether it will take years to revive Venezuela's production and whether future administrations would overturn the agreement.
The US government is not investing money in the new company, but its backing will help attract investment to ramp up production. Chevron, the second-largest US oil company, has been the only major American player operating in Venezuela since nationalization in 2007.