Sawt Falasteen - Venezuela, Chevron strike deals to expand oil operations in key region

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Venezuela, Chevron strike deals to expand oil operations in key region
Venezuela, Chevron strike deals to expand oil operations in key region / Photo: Juan BARRETO - AFP

Venezuela, Chevron strike deals to expand oil operations in key region

US oil giant Chevron and the government of Venezuela signed two deals Monday that will expand oil production in the country, as the country seeks to boost private investment in the sector.

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A signing ceremony took place at Miraflores Palace, where interim president Delcy Rodriguez was joined by Chevron Venezuela president Mariano Vela and a number of US dignitaries, including Charge D'affaires Laura Farnsworth Dogu and Assistant Secretary of Energy Kyle Haustveit.

The deals see Chevron increasing its stake in a joint venture it has with the Venezuelan state oil company, known as PDVSA, that extracts oil from the Orinoco Oil Belt -- one of the world's largest oil deposits, according to the US Geological Survey.

In return, Chevron will hand over some rights to offshore gas extraction and reduce a stake in other ventures.

Since the stunning capture of former Venezuelan president Nicolas Maduro by US forces in early January, the Trump administration has worked closely with Rodriguez to drum up foreign investment in the country's petroleum sector.

The push has been met with a mixed reaction, as some companies have felt skeptical about the heavy investment needed in infrastructure.

Rodriguez shepherded a reform of the country's petroleum regulations in late January, unwinding decades of state control over the oil sector.

In return, the United States eased sanctions on Venezuela's oil industry, expanding the ability of US companies to operate in the country.

X.Habash--SF-PST