Chevron Nears Deal To Expand Venezuela Oil Operations

Venezuela could soon become a much bigger part of Chevron’s global oil business, according to Bloomberg.

The company is reportedly nearing an agreement to take control of operations at two large crude-producing areas in the country’s Carabobo region, adding access to substantial heavy-oil resources.

The potential expansion comes as Washington seeks to attract more American capital to Venezuela’s energy sector and boost the country’s output. Chevron already has an established presence there through a partnership with state oil company PDVSA, making it the only major US producer currently active in Venezuela.

Bloomberg reported that Chevron has also been discussing investment conditions with the government of acting President Delcy Rodríguez. Any new arrangement could improve the economics of committing additional capital to Venezuelan production.

The expected deal is unrelated to separate talks involving possible direct US government participation in Venezuelan oil assets. Chevron has not publicly commented on the negotiations.

The development marks a major shift in the US-Venezuela relationship after years of hostility. Washington imposed sweeping sanctions on Venezuela’s oil industry during Nicolás Maduro’s rule, sharply limiting the country’s access to US markets and restricting American companies’ ability to operate there. Chevron remained a notable exception, continuing limited activities under US government authorization.

Relations entered a new phase following Maduro’s capture by US forces. The Trump administration has since sought greater influence over Venezuela’s energy sector, viewing the country’s enormous petroleum reserves as both an economic opportunity and a strategic asset.

For Venezuela, renewed US involvement could bring badly needed investment and technical expertise to an oil industry weakened by years of underinvestment, sanctions and deteriorating infrastructure. For Washington, expanding American participation could help increase Venezuelan production while giving the US greater influence over how the country’s oil resources are developed and sold.