Venezuela Signs Energy Contracts With Chevron, Eni, and GE Vernova
| Chevron Contract | Valued at $7 billion to expand operations in two Orinoco Belt oil fields over five years. |
|---|---|
| European and Grid Deals | Italy's Eni acquired exploration rights to Junin 5, while US firm GE Vernova will assist with grid repairs. |
| Production Targets | US officials project Venezuelan output will rise from 1.25 million to 2 million barrels per day by 2030. |
| Elections Postponed | Both US and Venezuelan officials indicated elections will not be held immediately following Nicolas Maduro's removal. |
Interim Venezuelan President Delcy Rodriguez and United States Energy Secretary Chris Wright have overseen the signing of major commercial energy agreements in Caracas with international companies including Chevron, Eni, and GE Vernova. The deals aim to increase Venezuelan crude output and repair energy infrastructure following the US removal of former President Nicolas Maduro eight months prior.
Expansion of Oil and Infrastructure Projects
Under the new contracts, US producer Chevron signed a $7 billion agreement to develop two additional fields in the Orinoco Belt, aiming to more than double output from those assets within five years. Chevron remains the top private oil producer in Venezuela.
Italian energy firm Eni obtained exclusive exploration rights for the Junin 5 oil field. Meanwhile, US company GE Vernova was contracted to help repair Venezuela’s electrical network.
Wright stated that total oil production in Venezuela is expected to reach 2 million barrels per day by the end of the decade, up from current levels of 1.25 million barrels per day. The figures remain below Venezuela’s late-1990s peak of over 3 million barrels per day. These commercial agreements are distinct from a separate arrangement granting a US-led firm 100-year concessions across 17 oil fields, which represent approximately 20 percent of Venezuela’s total reserves.
Political and Economic Terms
The contracts follow legislative reforms enacted in January after US forces seized Maduro. Rodriguez estimated Venezuela will earn $209 billion in profit from the arrangements over 25 years, arguing that increased production “translates into more jobs, higher wages, better public services, hospitals, schools and food.”
The agreements mark a departure from the nationalization policies of former President Hugo Chavez. Amid criticism over Venezuelan sovereignty, Wright denied that Washington was “stealing Venezuelan oil,” characterizing the agreements as bringing capital and technical expertise to develop underutilized resources.
Scrutiny has also focused on Venezuelan businessman Alejandro Betancourt, who faces fraud allegations and heads North American Blue Energy Partners (NABEP). Under the broader energy framework, the US government is taking a 35 percent stake in NABEP, Venezuela’s second-largest private oil firm. Betancourt did not attend the signing, though Wright cited NABEP’s “highly successful track record of producing large volumes of oil in Venezuela.”
Delay in Democratic Elections
The signing comes as interim authorities face questions regarding the timeline for democratic elections. US President Donald Trump rejected calls from some Republican lawmakers for immediate polls, stating, “I just don’t think they’re ready yet.” Rodriguez expressed a similar stance, saying voting would occur when “Venezuela is ready.”
Background
Venezuela possesses the world’s largest proven oil reserves, situated primarily in the Orinoco Belt region. After extensive state nationalizations in the 2000s under Hugo Chavez, state oil company PDVSA maintained primary control over production. Years of political turmoil, infrastructure decay, and international sanctions contributed to a sharp drop in national crude output from peak levels recorded in the late 1990s.
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