Venezuela Signs Major Oil Deals with US Companies Amid Industry Risks

US oil and gas companies have signed major deals with Venezuela's government after the overthrow of President Nicolás Maduro in January. Among those that have secured contracts are Chevron, SLB (formerly known as Schlumberger), Hunt Oil, and the US government itself. The deals mark a significant milestone for the Trump administration, which has touted Venezuela as an opportunity for the industry.

The largest deal was signed by Chevron, which agreed to more than double its production in Venezuela over the next five years to 600,000 barrels a day. This would account for more than half of Venezuela's current output. The US government also secured a deal giving it a 35% equity stake in Venezuela's second-largest private oil company, North American Blue Energy Partners.

Industry experts say that small and less-established independent companies have largely stayed away from these deals due to the risks involved. They consider cutting deals with Venezuela too uncertain, given its crumbling infrastructure and political turbulence.

Houston-based CEO Jorge Aponte of Baycor International said he is optimistic about the growing relationship between Venezuela and the US's oil and gas industries. He believes that small US companies would benefit from finding potential partners in Venezuela, but notes that this has kept many American players on the sidelines.