US seeking ownership stake in Venezuela oil: Report

The Trump administration is negotiating with Venezuela’s interim government to secure an ownership stake in the South American country’s oil resources, according to two US officials cited by US media Thursday.

The discussions involve more than a dozen productive oil fields with about 90 billion barrels in proven reserves, rather than Venezuela’s entire estimated 300 billion barrels of proven oil reserves, according to the Axios news website.

Axios said the potential “historic” deal could double US oil reserves by giving Washington access to Venezuela’s roughly 300 billion barrels of proven reserves. “Calling this agreement huge would be an understatement. It’s massive,” one of the officials told the outlet.

The US would receive an ownership stake in the fields, while private companies, including US firms, would develop them and generate additional oil revenues for the Venezuelan government.

The negotiations are being led by US Secretary of State Marco Rubio and Venezuela’s Acting President Delcy Rodriguez, while White House Deputy Chief of Staff Stephen Miller is also involved, the report said.

The administration is seeking to emphasize that the arrangement would benefit the Venezuelan people amid concerns that Rodriguez could face accusations of giving away the country’s natural resources to the US, according to Axios.

The exact timing for a final agreement remains unclear. US Energy Secretary Chris Wright is expected to travel to Venezuela next week to discuss ways for US companies to increase oil production in the country.

The potential agreement comes as global oil supplies have been disrupted by the wars in Iran and Ukraine, contributing to higher prices. The US Strategic Petroleum Reserve has also fallen to its lowest level in four decades.

Venezuela holds the world’s largest proven oil reserves, but its oil industry has suffered from years of underinvestment, mismanagement and declining production.

The Trump administration has made increasing US access to Venezuelan oil a key element of its broader energy and foreign policy toward the Western Hemisphere.

The administration said it aims to “secure the energy future of the Western Hemisphere for generations to come,” while easing price pressures caused by the war in Iran.

The latest talks build on Washington’s broader efforts to rebuild Venezuela’s oil sector following the US capture of President Nicolas Maduro in January.

The administration has since backed an interim government led by Rodriguez while pushing for greater US involvement in the country’s energy industry.