US’s Chevron, Italy’s Eni to expand oil projects in Venezuela

What the report says

Chevron, Italy’s Eni and other energy companies have signed new oil-related agreements in Caracas, according to Al Jazeera, in a move that comes days after Venezuela reached a broader arrangement giving the United States control over a share of the country’s oil reserves. The ceremony was overseen by interim President Delcy Rodriguez and US Energy Secretary Chris Wright, highlighting the unusual level of direct US involvement in Venezuela’s energy sector.

Al Jazeera reported that the latest contracts are separate from the larger Caracas-Washington deal covering 17 oilfields, or about one-fifth of Venezuela’s reserves. Several of the projects had been under discussion with the Oil Ministry and state company PDVSA since a January reform. Chevron said its two-field expansion in the Orinoco Belt is valued at $7bn, while Eni secured rights to explore the Junin 5 field. GE Vernova will also help repair the country’s electricity grid.

The agreements are significant because they could lift Venezuela’s oil production and bring in foreign capital and technology at a time when the country holds the world’s largest proven crude reserves but has struggled with years of underinvestment and sanctions. Wright said the deals were meant to speed up development, while Rodriguez argued they would support jobs and public services. The reported arrangement has also drawn criticism over sovereignty, political control and the role of figures tied to Venezuela’s state oil system.