US negotiates obtaining a stake in Venezuela's oil fields
The administration of US President Donald Trump is in talks with Venezuela's interim government about the American side obtaining a stake in the country's major oil fields. The deal under discussion covers more than a dozen active fields with proven reserves of about 90 billion barrels of oil.
Axios reported this citing two American officials. Reuters could not independently confirm the information yet.
The negotiations are at an advanced stage, but the final terms of the agreement are still being coordinated. One of Axios' sources described the potential deal as "large-scale."
Field reserves estimated at 90 billion barrels
This does not refer to all of Venezuela's oil resources, whose proven reserves amount to about 300 billion barrels and are considered the largest in the world.
Washington is discussing obtaining a stake in more than 12 already productive fields. According to American officials, their combined proven reserves reach about 90 billion barrels.
Part of these assets were previously controlled by influential representatives of the Venezuelan regime, including individuals who faced charges, and some were linked to interests previously controlled by China.
Axios writes that obtaining such a stake would more than double the volume of oil reserves to which the US has direct access.
In exchange, Venezuela is to receive an influx of private capital. The development of the fields is expected to be undertaken by private companies, including American oil and gas corporations. Part of the production revenue will go to the Venezuelan state.
Talks led by Rubio and Venezuela's interim president
On the US side, the negotiation process is headed by Secretary of State Marco Rubio, and on the Caracas side — by Venezuela's acting president Delcy Rodríguez.
In July, senior representatives of the State Department and the Pentagon visited Caracas to discuss the details of future cooperation. Stephen Miller, deputy White House chief of staff, is also participating in the talks.
According to Axios, Trump began discussing the possibility of the US obtaining a stake in Venezuela's oil fields even before the January 3 operation that resulted in the capture of Nicolás Maduro.
The American administration is trying to present the future scheme as beneficial to both sides. Washington expects that the participation of American companies will increase production while also raising Venezuela's own oil revenues.
US seeks to increase supply amid expensive oil
The talks accelerated against the backdrop of the war with Iran and ongoing tension around oil supplies. Conflicts in the Middle East and Russia's war against Ukraine have limited supply in the global market and pushed prices up.
An additional factor is the state of the American Strategic Petroleum Reserve, which is currently near its lowest levels in four decades.
US Energy Secretary Chris Wright is discussing a trip to Venezuela as early as next week. One of the main topics of the visit is expected to be increased oil production by American companies.
The exact timing of the agreement is still unknown. The White House has not publicly commented on the terms of the potential deal.
