Chevron Expands in Venezuela Amid US Energy Secretary Visit

## Catalyst Analysis: Chevron Expands Operations in Venezuela Chevron is set to expand its presence in Venezuela, coinciding with a visit from the U.S. Energy Secretary to Caracas. This development follows a reported 35% stake taken by an office within the U.S. Treasury, which also entitles the U.S. State Department to purchase 20% of the output at production cost.

## Impact on Energy Sector Senator Marco Rubio has stated that U.S. government backing is essential for attracting the private investment needed for field development. He noted that the Defense Department holds a special account enabling it to take possession of a portion of these assets. Former President Trump has indicated that other major oil companies, such as Exxon, might follow Chevron's lead, though Exxon has stated its position remains unchanged.

### Winners, Losers & Uncertainty Chevron stands to gain significant operational expansion. The U.S. government secures favorable energy terms and access. Venezuela benefits from renewed foreign investment and potential economic activity. However, the fine print of the agreement remains a point of scrutiny.

### Risk Watch — Legal/Timeline Senator Rubio emphasized the need to understand the precise terms of the agreement, stating, "We need and are obliged to know what is written in the fine print." The timeline for the full operational expansion and the implications of the Defense Department's special account remain key areas to