Chevron Nears Billion-Dollar Deal to Add Two Venezuelan Heavy-Oil Fields as Halliburton Also Enters Talks

Chevron is close to a deal to expand its Venezuelan operations by adding two heavy-oil fields to its portfolio, the Wall Street Journal reported on August 28, with the agreement potentially worth billions of dollars. Halliburton is also in talks to invest in Venezuelan oil fields, according to the report, marking a broader push by U.S. energy firms to re-enter the country. A Bloomberg report separately cited the U.S. as being in talks to take a major stake in Venezuelan oil fields.

Chevron shares rose on the news. The development comes as Venezuela, home to the world's largest proven crude reserves, moves closer diplomatically to the United States. A former Chevron executive, Ali Moshiri, told CNBC the concept was sound but that implementation would be the central challenge.

The deals arrive against a volatile oil backdrop: crude futures were on track for weekly losses as markets weighed optimism over crude flows through the Strait of Hormuz against a costly stalemate in the Iran conflict, with BNP Paribas warning prices could reach $140 a barrel if that conflict drags on. Reports of additional Venezuelan supply contributed to the day's slip in oil prices, and analysts noted that a Venezuelan exit from OPEC could further reshape global crude markets.