Chevron Expands Operations in Venezuela Amid Trump-Backed Oil Development Deal

US oil giant Chevron has confirmed its plans to expand operations in Venezuela, a move that comes days after President Donald Trump announced a deal to develop the nation's oil reserves. According to Chevron, it has been assigned additional acreage in the Orinoco Belt, where the company already has an established presence.

The company will invest more than $7 billion over the next five years as part of joint ventures, with production expected to increase from around 2026 levels by approximately 600,000 barrels per day. Chevron's CEO, Mike Wirth, stated that the expanded position reflects the company's confidence in Venezuela's resource potential and its ability to compete for investment.

Trump has been pushing to get US businesses involved in Venezuela's oil industry, suggesting that other companies are readying to move into the country. However, experts have expressed skepticism about the deal, warning that it will take years to revive Venezuela's oil industry due to its dilapidated infrastructure and political instability.

Treasury Secretary Scott Bessent defended the agreement, stating that Chevron is uniquely suited to operate in Venezuela and that the deal will 'push down oil prices' and benefit US consumers and the Venezuelan economy.