Chevron to Expand Operations in Venezuela Amid Trump-Backed Oil Deal

US oil giant Chevron is expected to expand its operations in Venezuela as part of a deal between the US and Venezuelan governments, a US official confirmed on Tuesday.

The announcement comes after President Donald Trump revealed an ambitious plan to develop Venezuela's massive oil reserves and give the Pentagon a stake in the profits.

Chevron will reportedly invest in 17 oil fields with estimated reserves of 65 billion barrels, with the Pentagon taking a 35% ownership stake and the State Department set to buy 20% of the produced oil at cost through a new company.

The deal has been met with skepticism from analysts who question whether Venezuelan acting President Delcy Rodríguez has the authority to grant such long-term rights to foreign companies, as well as concerns over the involvement of North American Blue Energy Partners (NABEP), owned by businessman Alejandro Betancourt, who faces money laundering allegations in Spain and Switzerland.

The Trump administration claims that NABEP was vetted and found to be a viable partner for the deal, which aims to increase oil production in Venezuela and help the country transition from decades of autocratic rule.