US Energy Majors Scale Up Venezuelan Operations Under New Washington-Caracas Oil Accord

American energy companies formalized a series of multi-billion-dollar agreements with Venezuela on Wednesday, just days after the South American nation consented to granting Washington oversight of approximately one-fifth of its extensive oil reserves.

US Energy Secretary Chris Wright visited Venezuela’s capital to supervise the signing of agreements valued at “tens of billions of dollars in investment,” a move viewed as a reciprocal exchange for Washington securing majority control over 65 billion barrels of Venezuelan oil reserves.

Wright characterized the agreements—signed by Chevron, GE Vernova (a General Electric subsidiary), and Italy’s ENI—as “critical in initiating this momentum toward peace, opportunity, and prosperity” in Venezuela.

US President Donald Trump has hailed the Venezuela oil reserves agreement as the “biggest oil deal in world history.”

This comes as US Republicans prepare for potential losses in the November midterm elections, driven by escalating fuel costs resulting from the conflict with Iran and a broader domestic affordability crisis spanning housing, food, utilities, and other essentials.

However, the agreements have sparked significant concerns regarding Venezuelan sovereignty. Critics in both nations accuse Trump of holding the country hostage following the ousting of former President Nicolas Maduro in a military raid, warning that interim leader Rodriguez could face a similar outcome if she does not comply with Washington’s demands.

Wright insisted the US was not “stealing Venezuelan oil.” “We are simply taking an idle, subterranean asset that is not benefiting the Venezuelan people and injecting the capital and technology required to develop it.”

Interim President Delcy Rodriguez previously denied surrendering her nation’s wealth, arguing that allowing the US to participate in Venezuela’s oil riches is essential to attract sector investment.

“Increased oil production translates into more employment, higher wages, and improved public services such as hospitals, schools, and food,” she stated. Rodriguez estimates Venezuela will generate $209 billion (€180 billion) in profit from these deals over a 25-year period.

US oil giant Chevron confirmed its expansion in Venezuela after President Trump announced an ambitious plan to develop the country’s oil reserves and grant the Pentagon a share of the profits.

As the only US oil company with a substantial footprint in Venezuela, Chevron announced on Wednesday that it had been allocated additional acreage in the Orinoco Belt, where it already operates.

The company intends to invest over $7 billion (€6 billion) in the next five years, aiming to more than double its current output to approximately 600,000 barrels per day.

“Chevron’s presence in Venezuela spans more than a century, and our expanded footprint reflects our confidence in the country’s vast resource potential,” stated CEO Mike Wirth in a prepared release.

Venezuela possesses the world’s largest proven crude oil reserves, totaling over 303 billion barrels, according to OPEC’s 2025 Annual Statistical Bulletin. Saudi Arabia ranks a distant second with 267 billion barrels.

The agreement has drawn skepticism from energy experts who warn it will take years to revitalize Venezuela’s oil industry, which has been left in disarray following prolonged neglect.

Questions also remain regarding whether acting President Delcy Rodríguez possesses the legal authority to grant North American Blue Energy Partners (NABEP) 100-year rights over 17 oil fields containing 65 billion barrels in reserves—and whether future Venezuelan or American administrations might reverse the agreement.

According to Ian Vásquez, vice president for international studies at the Cato Institute, Venezuela’s constitution mandates that arrangements of this nature require approval from the National Assembly, which has not occurred.

“The deal lacks legitimacy because it was struck with a dictatorship that has maintained power for decades through violence and what was likely the largest electoral fraud in Latin American history in 2024,” Vásquez wrote.

“The agreement was also reached under immense pressure, both military and otherwise, from the United States. Consequently, any future Venezuelan democracy will challenge the deal, thereby undermining confidence in the current arrangement,” he added.

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