US Defends Venezuela Deal As Chevron Prepares To Expand Operations

The Trump administration on Tuesday defended its controversial deal to take a major stake in a new venture operating oil fields in Venezuela, as Chevron prepared to announce a significant expansion of its operations in the country.

US officials said the agreement is part of Washington’s broader effort to rebuild Venezuela’s devastated oil industry, strengthen US energy interests and support the country’s transition toward democracy. The deal involves North American Blue Energy Partners (NABEP), owned by Venezuelan businessman Alejandro Betancourt, whose company is already the country’s second largest private oil operator.

Under the agreement, the Pentagon would take a 35% ownership stake in the new venture, while the US State Department would have the right to purchase 20% of its oil production at cost. The US government is not directly investing money, officials said, but its backing is expected to help attract the capital needed to restore production.

The arrangement covers 17 oil fields with around 65 billion barrels of reserves and has faced questions over its legal basis and long term viability. US officials defended their choice of Betancourt despite reports that he had faced money laundering investigations in Spain and Switzerland, saying he had been vetted and that no US laws were violated.

Chevron is separately preparing to expand its longstanding Venezuelan operations. Company officials and US Energy Secretary Chris Wright are expected in Venezuela, where the new investment is set to be formally unveiled. Reuters previously reported that Chevron was negotiating to expand existing projects, including adding oil fields to its portfolio and gaining greater control over operations.

The developments mark a major shift in US policy toward Venezuela’s energy sector. The Trump administration has encouraged American companies to increase their presence in the country and reduce reliance on oil supplies from the Middle East, while seeking to counter Chinese and Russian influence.

Venezuela’s oil industry has struggled for years because of underinvestment, mismanagement and sanctions. The country’s National Assembly has backed the new oil agreement, but analysts continue to warn that restoring production and infrastructure will take years and that the deal could face further legal and political challenges.

Chevron remains the only major US oil company with a significant existing presence in Venezuela, after companies including ExxonMobil and ConocoPhillips left following former President Hugo Chávez’s nationalisation of the oil industry in 2007.