- Chevron is expected to announce an expansion of operations in Venezuela, following a sweeping agreement that has raised questions about its legal authority and long-term viability.
- The deal with the U.S. government would create a new company, where the Pentagon would take a 35 per cent ownership stake, and the State Department would have the right to buy 20 per cent of the oil produced at cost.
- The Trump administration negotiated the agreement with Rodriguez, who took power after the January military operation to capture Nicolás Maduro and spirit him to the United States to face federal narcoterrorism and drug trafficking charges.
- Analysts have expressed skepticism regarding the agreement, questioning whether Delcy Rodríguez has the legal authority to grant 100-year rights over 17 oil fields with reserves of 65 billion barrels.
- The Venezuelan Constitution states that contracts of this kind with foreign governments must also be approved by the National Assembly, which did not occur.
- The Pentagon’s role in the deal comes through its Office of Strategic Capital, created under former President Joe Biden to invest in technology needed for national security.
- A second U.S. official described the Venezuela agreement as “a very standard deal” and noted that the office has made several similar ones since Trump returned to office.
- The U.S. administration defended its decision to partner with Betancourt, who has faced criminal investigations for alleged money laundering in Spain and Switzerland, stating that no U.S. laws were violated.
Chevron's expansion into Venezuela is poised to reshape the oil landscape, as a U.S. official confirmed the deal that includes a 35% Pentagon stake and a 20% oil purchase right for the State Department.12
The announcement is expected during a visit by Chevron officials and Energy Secretary Chris Wright to Venezuela on Wednesday.
This initiative follows President Trump's recent partnership with North American Blue Energy Partners (NABEP) aimed at revitalizing Venezuela's oil industry, which has faced significant production challenges.
However, analysts express skepticism regarding the feasibility of the agreement, citing concerns over the legal authority of Venezuela's acting President Delcy Rodríguez to grant 100-year rights over 17 oil fields containing 65 billion barrels of reserves.4
“It will take years to revive Venezuela’s production,” analysts warn, questioning the stability of the agreement under potential future administrations.
The deal's legitimacy is further complicated by the Venezuelan Constitution, which mandates National Assembly approval for such contracts, a step that has not been taken.5
The Pentagon's involvement stems from its Office of Strategic Capital, established to invest in technologies crucial for national security.6
A U.S. official described the agreement as “a very standard deal,” despite the controversies surrounding the parties involved, including allegations against Betancourt, who was vetted by the administration.89
This expansion marks a significant moment in U.S.-Venezuela relations, as the Trump administration seeks to capitalize on the country's vast oil reserves amidst ongoing geopolitical tensions.3
“Analysts question whether acting President Delcy Rodríguez has legal authority to grant 100-year rights over 17 oil fields with 65 billion barrels in reserves, and whether future administrations would overturn the deal. The Venezuelan Constitution requires National Assembly approval, which has not occurred.”
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