U.S. reportedly nearing massive deal for access to Venezuelan oil fields
Negotiations involve potential ownership stakes or long-term leases for fields holding 90 billion barrels of reserves.
Quick Look
- The U.S. is reportedly negotiating a major deal for access to Venezuelan oil fields containing 90 billion barrels of reserves.
- The agreement follows the January capture of Nicolás Maduro and ongoing U.S. management of Venezuelan oil sales.
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Why It Matters
The U.S. has been managing Venezuelan oil sales since the capture of Nicolás Maduro in January. Venezuela holds the world’s largest share of proven oil reserves.
The U.S. is reportedly close to cementing a “massive” deal for access to Venezuelan oil fields.
"Calling this deal huge would be an understatement," a U.S. official familiar with negotiations told Axios. "It is massive."
The deal would reportedly see the U.S. gain an ownership stake or long-term access for oil fields with proven reserves of 90 billion barrels, officials told the outlet.
The State Department was in Venezuela last month to discuss the deal, according to Axios.
"This is real and being discussed at the highest levels of the U.S. and Venezuelan governments," an inside source told Reuters.
The deal could take the form of a lease, with further auctions or tenders allocating oil fields to U.S. producers, according to the outlet.
The Independent has contacted the White House, State Department and Venezuelan government for comment.
The U.S. has been managing Venezuelan oil sales since American troops captured Venezuelan strongman Nicolás Maduro in a commando raid in January and brought him back to the U.S. to face criminal charges.
Shortly after the operation, the U.S. said major companies would be investing at least $100 billion in Venezuelan oil fields, which were degraded and plagued with corruption under Maduro and his predecessor, despite Venezuela possessing the world’s largest share of proven oil reserves.
President Trump said in July that the U.S. has collected more than $13 billion from the sale of Venezuelan oil.
"$13 billion from Venezuela? I think even more than that,” he told reporters. “We’ve paid for that war many times over.”
There have been few details released publicly about how the U.S. is facilitating the sales and how much oil revenue is being returned to the Venezuelan state.
Secretary of State Marco Rubio has said oil sales are being audited by the firm KPMG and money from the sales is being held in a Citibank account.
The Trump administration has issued temporary sanctions relief authorizing U.S. companies and individuals to do business with the Venezuelan oil sector.
An infusion of Venezuelan oil into U.S. markets could be a boon ahead of the midterms for the Trump administration, which has struggled with high fuel prices caused by the Iran war and its strangling of the Strait of Hormuz, a vital oil shipping route.
The Trump administration has a habit of teasing grand international deals, only for them to fall short.
Open Questions
- What are the specific terms of the proposed lease?
- How much revenue is being returned to the Venezuelan state?
