Venezuela is preparing to give more oil fields to Chevron Corp. and Spain’s Repsol SA, in what could mark a turning point for the country’s struggling energy industry. Officials in Caracas are expected to approve new exploration and production areas within days, according to people familiar with the plan.

The decision reflects growing pressure and encouragement from the administration of Donald Trump, which wants private companies to help rebuild Venezuela’s oil sector. Washington sees foreign investment not only as a way to lift production but also as a way to reduce the influence of China and Russia in the country.

Venezuela holds some of the largest oil reserves in the world. Yet its industry has been in steep decline for more than a decade. Poor management, corruption and lack of investment have left production at around one million barrels per day. That is less than a third of what the country produced in the 1990s. Much of the infrastructure is old and in need of repair.

Chevron is currently the only major Western oil company still producing oil in Venezuela. It operates under a special licence from the United States Treasury and accounts for roughly a quarter of the country’s output. If new licences are granted, Chevron could expand its operations further and increase production significantly over the next two years.

Repsol already has investments in Venezuela but lost its previous authorisation to produce crude when sanctions were tightened. One of its most important projects is Cardon IV, a joint venture with Italy’s Eni SpA, which produces gas from the large offshore Perla field. That gas supplies power plants in western Venezuela.

The United States is expected to issue broader licences that would allow international oil companies to operate in Venezuela without breaking sanctions. Officials say this could lead to a meaningful rise in output, possibly as much as 30 percent within 18 to 24 months.

For Venezuela, the stakes are high. Oil provides most of the country’s export earnings and government revenue. A recovery in production could bring in badly needed cash and help stabilise the economy. For Washington, the strategy is both economic and political. By opening the door to American and European firms, the Trump administration hopes to reshape Venezuela’s energy sector and its alliances at the same time.