Key facts
- Chevron is expected to expand its oil operations in Venezuela.
- The U.S. government announced a deal for a joint venture with a private Venezuelan company.
- The U.S. is set to receive 55% of the oil from this joint venture.
- Venezuela's acting president stated the deal aims for economic recovery and industry modernization.
Chevron is anticipated to expand its oil operations in Venezuela, according to a U.S. official. The Trump administration has announced an agreement with the Venezuelan government to develop the country's oil reserves, forming a joint venture with a private Venezuelan company. Under this deal, the U.S. government is set to receive 55% of the oil produced, which equates to approximately 65 billion barrels of underground reserves. President Trump referred to this as 'the biggest oil deal in the world.'
Venezuela's acting president, Delcy Rodríguez, stated that the agreement is a crucial step towards economic recovery and the modernization of the nation's oil industry. She indicated that the oil reserves would be utilized for concrete solutions, including housing development, job creation, and improved public services for the Venezuelan people.
However, energy experts express skepticism about the deal's immediate impact on global gas prices, citing potential challenges such as the U.S. not having a national oil company to operate on the ground and the attractiveness of an 'at-cost' deal for international investors. Questions also arise regarding the legitimacy of the current Venezuelan government with whom the deal was made.