Trump-Backed Chevron Expansion in Venezuela Sparks Skepticism

US oil giant Chevron is set to expand its operations in Venezuela, according to a US official. The expansion comes just days after President Donald Trump announced an ambitious deal to develop Venezuela's oil reserves and give the Pentagon a stake in the profits.

The new investment will be formally unveiled on Wednesday when Chevron officials and Energy Secretary Chris Wright visit Venezuela. Chevron is the only major American oil company actively operating in Venezuela since the nationalization of the industry in 2007.

The Trump administration's deal with North American Blue Energy Partners (NABEP) has been met with skepticism from analysts, who say it will take years to revive Venezuela's production. The agreement gives the Pentagon a 35% ownership stake and allows the State Department to buy 20% of the oil produced at cost.