Chevron to complete deal in Venezuela to migrate, expand oil projects, sources say - Reuters
Chevron is nearing completion of a deal with Venezuela’s PDVSA that would shift existing assets to the U.S. firm and expand offshore production, pending U.S. sanctions waivers. The agreement, praised by the Biden administration as a step toward economic stabilization, faces criticism from Venezuelan opposition groups and wary U.S. lawmakers.
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Chevron is nearing completion of a deal with Venezuela’s PDVSA that would shift existing assets to the U.S. firm and expand offshore production, pending U.S. sanctions waivers. The agreement, praised by the Biden administration as a step toward economic stabilization, faces criticism from Venezuelan opposition groups and wary U.S. lawmakers.
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**Chevron Moves Toward Finalising Venezuelan Oil Pact** *By INDGovernment.com Staff*
Washington‑based Chevron Corp. is close to sealing a multi‑year agreement with Venezuela’s state‑run oil giant Petróleos de Venezuela, S.A. (PDVSA) that would see the U.S. firm migrate existing assets and expand production at several offshore fields, sources familiar with the negotiations told Reuters. The deal, which has been under discussion since early 2023, is expected to be signed by the end of the month, pending final approvals from both the U.S. Treasury’s Office of Foreign Assets Control (OFAC) and the Venezuelan Ministry of Energy. Under the terms, Chevron would assume operational control of the La Ceiba‑1 and Junín‑1 platforms, invest roughly $2 billion in enhanced oil recovery techniques, and commit to a phased increase in output that could add up to 150,000 barrels per day to Venezuela’s struggling export capacity.
The prospective agreement arrives amid a broader push by the Biden administration to recalibrate sanctions on Caracas, a move aimed at coaxing the Maduro government back to the negotiating table over democratic reforms. While the U.S. State Department has signaled a willingness to issue limited waivers for “non‑military” energy projects, congressional leaders remain divided, with some members warning that any concession could legitimize a regime accused of human‑rights abuses. The Venezuelan opposition, represented by the Democratic Unity Roundtable (MUD), has publicly decried the talks, alleging that the United States is seeking a “large‑scale stake” in the country’s oil reserves that could undermine national sovereignty and bypass democratic transition efforts.
If finalized, the Chevron‑PDVSA pact would represent the most sizable private‑sector oil venture in Venezuela since the 1990s, potentially unlocking billions of dollars of foreign investment and offering a modest boost to the nation’s ailing economy. Analysts caution, however, that the project’s success will hinge on the stability of the regulatory environment, the durability of U.S. sanctions relief, and the ability of both parties to navigate lingering political tensions. In the meantime, the unfolding negotiations continue to draw intense scrutiny from regional observers, investors, and the Venezuelan public alike.
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