Chevron set to expand in Venezuela as US energy secretary lands in Caracas

The United States has defended President Donald Trump's oil deal with Venezuela, claiming it would reduce oil prices for Americans and limit Russian and Chinese influence. Venezuela's National Assembly recently approved the multibillion-dollar agreement, which grants the U.S. control over around one-fifth of the country's oil reserves.

However, the deal has faced criticism due to its significant implications. On Tuesday, US Energy Secretary Chris Wright visited Venezuela, with the signing of the agreement slated for the following day. Chevron, an oil giant, is expected to announce a major expansion in the country on the same day.

President Trump had previously met with oil executives at the White House, aiming to address rising gas prices caused by the Iran conflict. The administration hopes the Venezuela deal could help achieve this goal. In a Spanish-language interview on YouTube, Secretary of State Marco Rubio emphasized that a private company is working with the U.S. to "normalize the Venezuelan economy."

He added that the deal involves the Defense Department, which holds a special account enabling it to seize a certain percentage of the assets.

Some opposition lawmakers abstained from the vote, demanding to review the agreement's terms first. However, National Assembly chief Jorge Rodriguez argued that the deal's funds would benefit Venezuelans. Venezuela's Defense Minister Gustavo Gonzalez Lopez provided full military support for the agreement, describing it as a move towards "prosperity and well-being for the country."

The deal will see the takeover of facilities previously operated by Russian and Chinese companies. The most controversial aspect is the involvement of Alejandro Betancourt, a Venezuelan businessman linked to shady dealings during Hugo Chavez's socialist administration. Betancourt manages North American Blue Energy Partners (NABEP), Venezuela's second-largest private oil company, of which the U.S. government will hold a 35 percent stake.

A U.S. official stated that Betancourt is a "proven operator," although recognizing that geopolitical situations often involve dealing with "imperfect" individuals.

Under the agreement, NABEP will grant the U.S. the right to purchase 20 percent of the oil pumped by the firm at production cost. The White House asserts that this arrangement will help mitigate corruption in the struggling Venezuelan oil industry and prevent Caracas from giving substantial supplies to its ally Cuba. The official further claimed that the U.S. control would end corruption and stop the Maduro government from using the oil industry as a personal "piggy bank."

The Trump administration's priority is cheaper oil ahead of the crucial U.S. midterm elections in November, where his Republican Party could potentially lose control of Congress.