Key facts
- Chevron is nearing an agreement to expand its oil operations in Venezuela, potentially adding two heavy-oil fields.
- Chevron currently operates three joint ventures with Venezuela's state-owned PDVSA and is the sole major U.S. oil company active in the country.
- Halliburton is also in discussions to provide oil-field equipment and services in Venezuela.
- Several U.S. energy company executives and Energy Secretary Chris Wright are expected to visit Caracas for production agreement signings.
- Hunt Oil recently became the first U.S. company to sign a Venezuelan crude production agreement.
- ExxonMobil and ConocoPhillips remain hesitant, seeking compensation for assets nationalized in 2007.
Chevron, the second-largest U.S. oil company, is reportedly in advanced negotiations to significantly expand its presence in Venezuela, a move that could add two heavy-oil fields to its existing operations. This potential expansion marks a substantial step for American energy companies looking to re-engage with Venezuela's vast petroleum reserves after a period of caution.
Chevron currently operates three joint ventures with Venezuela's state-owned oil company, PDVSA, and is the only major U.S. energy firm still active in the country. The Wall Street Journal reported that Halliburton is also in discussions to provide oil-field equipment and services. Executives from several U.S. energy companies, along with Energy Secretary Chris Wright, are anticipated to visit Caracas soon to finalize production agreements.
This renewed interest follows Hunt Oil's recent agreement to produce Venezuelan crude, making it the first U.S. company to do so in some time. However, rivals ExxonMobil and ConocoPhillips are reportedly holding back, still seeking compensation for assets nationalized by Hugo Chávez in 2007. Companies have been wary of investing billions without security guarantees and legal framework changes, especially as many potential fields require substantial new infrastructure and reliable electricity.
The push by U.S. energy firms aligns with President Donald Trump's call for investment in Venezuela, aiming to boost oil production in the Western Hemisphere and secure heavy crude for U.S. refineries. These negotiations are distinct from broader discussions between Washington and Caracas concerning a potential U.S. stake in some of Venezuela's most promising oil fields, estimated to hold 90 billion barrels of proven reserves.