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Wright Heads to Venezuela as Chevron Set to Expand Oil Footprint
(MENAFN) US Energy Secretary Chris Wright is set to travel to Venezuela within days, where Chevron is poised to announce a major expansion of its operations there, Secretary of State Marco Rubio told reporters Tuesday.
"We have had a number of small- to mid-sized deals announced over the last few days, and we think more are aligned and on the way," Rubio said during a call with journalists.
The move would boost Chevron's output capacity in Venezuela, part of a broader Trump administration push to draw fresh US private investment into the country's battered oil sector.
The announcement follows a landmark oil agreement the administration unveiled with North American Blue Energy Partners (NABEP), a privately held Venezuelan producer, covering 17 oil fields holding an estimated 65 billion barrels in proven reserves.
Rubio said Venezuela's untapped reserves outside that agreement run roughly double that figure, pointing to a vast additional resource base capable of drawing still more outside capital.
He drew a sharp contrast with Venezuela's oil arrangements under former President Nicolas Maduro, saying Cuba had received between $40 billion and $64 billion in Venezuelan oil either for free or at steeply discounted rates, while China secured markdowns of as much as $21 a barrel below Brent crude pricing. Russia, he added, took Venezuelan oil as a form of debt repayment from Caracas.
Rubio also noted that Venezuela's state oil firm, PDVSA, is still owed more than $21 billion in unpaid receivables — a shortfall he tied directly to oil having been handed out under the prior government's deals.
The newly structured agreements, officials say, are designed to keep oil revenue flowing to Venezuela itself rather than to foreign governments or figures tied to the Maduro-era regime.
Under the arrangement, NABEP is expected to pour as much as $100 billion into new Venezuelan oil infrastructure, while Washington secures a 35% equity stake in the company's parent entity.
The strategy reflects a dual aim: reviving Venezuela's oil output while curbing the sway that China and Russia have built in the sector. Administration officials also frame the effort as part of a longer-term push toward political and institutional reform in Venezuela, with Rubio linking the country's economic recovery to a broader democratic transition.
The developments mark Washington's deepest engagement yet with Venezuela's energy industry after years of underinvestment and sliding production.
"We have had a number of small- to mid-sized deals announced over the last few days, and we think more are aligned and on the way," Rubio said during a call with journalists.
The move would boost Chevron's output capacity in Venezuela, part of a broader Trump administration push to draw fresh US private investment into the country's battered oil sector.
The announcement follows a landmark oil agreement the administration unveiled with North American Blue Energy Partners (NABEP), a privately held Venezuelan producer, covering 17 oil fields holding an estimated 65 billion barrels in proven reserves.
Rubio said Venezuela's untapped reserves outside that agreement run roughly double that figure, pointing to a vast additional resource base capable of drawing still more outside capital.
He drew a sharp contrast with Venezuela's oil arrangements under former President Nicolas Maduro, saying Cuba had received between $40 billion and $64 billion in Venezuelan oil either for free or at steeply discounted rates, while China secured markdowns of as much as $21 a barrel below Brent crude pricing. Russia, he added, took Venezuelan oil as a form of debt repayment from Caracas.
Rubio also noted that Venezuela's state oil firm, PDVSA, is still owed more than $21 billion in unpaid receivables — a shortfall he tied directly to oil having been handed out under the prior government's deals.
The newly structured agreements, officials say, are designed to keep oil revenue flowing to Venezuela itself rather than to foreign governments or figures tied to the Maduro-era regime.
Under the arrangement, NABEP is expected to pour as much as $100 billion into new Venezuelan oil infrastructure, while Washington secures a 35% equity stake in the company's parent entity.
The strategy reflects a dual aim: reviving Venezuela's oil output while curbing the sway that China and Russia have built in the sector. Administration officials also frame the effort as part of a longer-term push toward political and institutional reform in Venezuela, with Rubio linking the country's economic recovery to a broader democratic transition.
The developments mark Washington's deepest engagement yet with Venezuela's energy industry after years of underinvestment and sliding production.
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