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Oil giant Chevron is planning to expand its operations in Venezuela, a U.S. official said Tuesday, just days after President Donald Trump announced an ambitious deal<\/a><\/span> to develop the nation\u2019s oil reserves<\/a><\/span> and give the Pentagon a stake in the profits.<\/p>\n The official, who briefed reporters on the expected announcement, said the company\u2019s officials and Energy Secretary Chris Wright<\/a><\/span> are expected to visit Venezuela on Wednesday where the new investment will be formally unveiled. The official spoke on condition of anonymity under ground rules set by the White House for the call.<\/p>\n Chevron is the second-largest U.S. oil company and the only one with a major presence in Venezuela. Chevron did not immediately respond to a request for comment.<\/p>\n The announcement comes after the White House confirmed on Monday it is partnering with North American Blue Energy Partners (NABEP) as part of President Donald Trump<\/a><\/span> \u2019s push to tap into Venezuela\u2019s oil industry<\/a><\/span>.<\/p>\n The sweeping agreement has been met with skepticism from analysts who say it will take years to revive Venezuela\u2019s production<\/a><\/span>. They have questioned whether Venezuela\u2019s acting President Delcy Rodr\u00edguez<\/a><\/span> has the legal authority to give the company 100-year rights over 17 oil fields with reserves of 65 billion barrels \u2014 and whether future Venezuelan or American administrations would overturn the agreement.<\/p>\n US official says private operator was vetted ahead of deal<\/strong><\/p>\n NABEP, owned by Venezuelan businessman Alejandro Betancourt, is already the second largest operator in Venezuela. The deal with the U.S. government would create a new company, where the Pentagon would take a 35% ownership stake, and the State Department would have the right to buy 20% of the oil produced at cost.<\/p>\n The U.S. administration sought to defend its decision to partner with Betancourt, who has faced criminal investigations for alleged money laundering in Spain and Switzerland, according to multiple media reports. No formal charges were ever filed. The official said that Betancourt was vetted and the administration found that \u201cno U.S. laws were violated.\u201d<\/p>\n At the same time, the official described Betancourt as the only viable partner available for the job, saying that \u201cyou have to work with the factors that you have in place.\u201d<\/p>\n The U.S. government is not investing money in the new company, the official told reporters, but its backing will help the company attract investment to ramp up production.<\/p>\n Analysts say that the deal seems certain to face legal challenges and potentially questions of legitimacy. The Trump administration negotiated the agreement with Rodriguez, who took power after the January military operation to capture Nicol\u00e1s Maduro and spirit him to the United States to face federal narcoterrorism and drug trafficking charges.<\/p>\n The Venezuelan Constitution states that contracts of this kind with foreign governments must also be approved by the National Assembly, which did not occur.<\/p>\n But the official said that agreement is a partnership with North American Blue Energy Partners, a private entity which is headquartered in Barbados and has its primary regional office and operations in Caracas, Venezuela.<\/p>\n Deal being pitched as a step toward stability, democracy for Venezuelans<\/strong><\/p>\n The Trump administration wants elections to happen as quickly as feasible, but is aiming to maintain stability as it helps Venezuela transition following decades of autocratic rule, the official said.<\/p>\n The official argued that maintaining stability during such transitions \u201calmost invariably requires you to work with elements of the existing structure, even as you are creating a new one.\u201d<\/p>\n The Pentagon\u2019s role in the deal comes through its Office of Strategic Capital, which was created under former President Joe Biden to invest in technology needed for national security.<\/p>\n A second U.S. official speaking on condition of anonymity described the Venezuela agreement as \u201ca very standard deal\u201d and said the office has made several similar ones since Trump returned to office.<\/p>\n Trump says other companies are readying for business<\/strong><\/p>\n Trump has had his eyes on Venezuela\u2019s oil since Maduro\u2019s capture, and his aides call it a path away from reliance on oil from the Middle East. Trump has been pressing to get U.S. businesses to restore a presence in the country. President Hugo Ch\u00e1vez<\/a><\/span> completed the nationalization of Venezuela\u2019s oil industry in 2007, leading major players like Exxon and ConocoPhillips to leave Caracas.<\/p>\n\n