Chevron and Eni expand Venezuelan oil projects amid new deals

Chevron and Eni are moving to expand their oil projects in Venezuela after major new agreements were signed in Caracas. These multibillion-dollar deals arrived just days following a political shift where the US agreed to take control of roughly one-fifth of the nation's oil reserves. The ceremony was overseen by interim President Delcy Rodriguez and United States Energy Secretary Chris Wright, who stood alongside Chevron and several other global energy firms to finalize contracts aimed at boosting output.

These agreements on Wednesday stand separate from a recently unveiled deal between Caracas and Washington that grants the US access to seventeen Venezuelan oilfields, representing about 20 percent of total reserves. Most of these new contracts involve project expansions negotiated with Venezuela's Oil Ministry and state oil company PDVSA since sweeping reforms were approved in January after the US abducted former President Nicolas Maduro.

Wright, who flew to Caracas to watch the signing, described the deals signed by Chevron, GE Vernova, and Italy's Eni as "critical in starting this ball rolling of peace, opportunity, and prosperity." He insisted they are not stealing oil but rather activating idle underground assets that currently bring no benefit to Venezuelan people. Wright told reporters on Wednesday that the US is bringing money and technology to develop these fields.

"We are trying to work at what I call Trump-speed," Wright said. "[President Donald] Trump didn't want a nudge or a slow drift in a positive direction." He wanted to see transformation happen as fast as possible. The new contracts will see Chevron and Eni ramp up operations while gaining greater stakes in specific oil fields.

Chevron, the US's second-largest oil company and currently the top private producer in Venezuela, has valued its deal to develop two additional fields in the Orinoco Belt at $7 billion. Output from these projects will more than double within five years. Eni secured exclusive rights to explore the giant Junin 5 oilfield. Meanwhile, GE Vernova, an offshoot of General Electric, will help repair Venezuela's battered electricity grid.

Questions about sovereignty are growing as critics in both nations accuse Trump of holding the country for ransom after the raid on Maduro. They warn that Rodriguez could face a similar fate if she does not comply with Washington's demands. Wright pushed back against these claims, arguing the total output will reach 2 million barrels per day by decade's end compared to 1.25 million today. That figure remains far below the peak of more than 3 million barrels per day seen in the late 1990s.

Delcy Rodriguez denied surrendering her country's riches, stating that cutting the US into Venezuela's oil wealth is necessary to secure investment. More oil translates into more jobs and higher wages, she said. It also means better public services, hospitals, schools, and food. She estimated Venezuela will make $209 billion in profit from these deals over 25 years. The pivotal role played by Alejandro Betancourt, a Venezuelan businessman accused of fraud, has come under scrutiny as the story continues to unfold.

He did not show up for Wednesday's ceremony. Betancourt has been linked to a corruption scandal at state oil company PDVSA and runs North American Blue Energy Partners (NABEP), Venezuela's second-largest private oil company, in which the US government is taking a 35 percent stake under the deal. Wright on Wednesday defended NABEP's "highly successful track record of producing large volumes of oil in Venezuela", adding: "That's a business partner you can believe in." The agreement is a major about-face for the "Chavismo" movement of late socialist firebrand Hugo Chavez, Maduro's mentor, who nationalised Venezuela's oil fields two decades ago on an anti-imperialist platform. It has amplified fears that the Trump administration is entrenching former Maduro loyalists, like Rodriguez, who have shown no readiness to hold democratic elections eight months after Maduro's overthrow.

Trump on Wednesday rebuffed calls from several Republican lawmakers for quick polls in Venezuela. "I just don't think they're ready yet. You know, it's very new. We took them out of a dictatorship, and we're getting along great with the government," he said. Rodriguez took a similar line, saying there would be "an electoral process" when "Venezuela is ready".