The administration of US President Donald Trump is nearing a deal to secure long-term access to a portion of Venezuela’s vast crude oil reserves, according to sources familiar with the negotiations.
The proposed agreement could allow the US government to lock in a group of Venezuelan oilfields for development by American companies, with the resulting crude supply guaranteed for the United States.
“This is real and being discussed at the highest levels of the U.S. and Venezuelan governments,” one source said.
A separate source said a “lease” was being considered as the legal framework for the arrangement, followed by an auction or tender process to allocate individual fields to US producers.
A list of 17 fields under discussion and seen by Reuters includes undeveloped fields in Venezuela’s huge Orinoco Belt as well as mature oil-producing areas around Lake Maracaibo.
Some of the fields are currently operated by a small Chinese company whose contract was signed during the administration of former Venezuelan President Nicolás Maduro.
The White House referred questions about the negotiations to the US Department of Energy. Venezuela’s oil ministry, state-owned oil company PDVSA and the Energy Department did not immediately respond to requests for comment, while Venezuelan Oil Minister Paula Henao could not be reached.
OPEC Exit Also Under Consideration
Venezuela is also considering leaving the Organisation of the Petroleum Exporting Countries (OPEC) as it deepens its relationship with Washington, Bloomberg reported on Thursday.
Venezuela was a founding member of OPEC in 1960 but has failed to meet its production quotas for years as its state-run oil industry suffered from prolonged neglect and corruption.
Washington has historically opposed OPEC’s influence over global oil prices.
Venezuela holds the world’s largest crude oil reserves, but its current hydrocarbons regulations do not provide for acreage leases for oil-producing areas. The country’s Constitution also reserves core activities in the oil industry for the state.
Recent reforms to Venezuela’s oil laws allow operations through joint ventures and production-sharing contracts. However, foreign oil companies have historically faced restrictions on booking Venezuelan reserves.
Deal Could Face Legal Challenges
Experts said the proposed agreement could face significant legal and constitutional hurdles, with the full details of the arrangement yet to emerge.
Axios first reported the negotiations on Thursday and said US Energy Secretary Chris Wright was planning to travel to Caracas as early as next week.
The talks come after Washington captured and removed Maduro from power in January. The Trump administration has since sought to secure a stable flow of Venezuelan crude for US refineries while encouraging American investment in the country’s deteriorated energy sector.
Venezuela currently produces about 1.25 million barrels of crude oil per day.
The proposed arrangement could also have implications for US fuel prices. The Trump administration is facing pressure over rising gasoline costs ahead of midterm elections later this year, increasing the political appeal of cheaper crude supplies and higher domestic and foreign production.
Washington is also seeking ways to replenish the Strategic Petroleum Reserve (SPR), including possible crude oil swaps with US producers.
The SPR currently holds about 290 million barrels in underground salt caverns, roughly 41% of its total capacity. Funding shortages and maintenance work have constrained efforts to rebuild the reserve after the United States drew heavily from it following Russia’s invasion of Ukraine in 2022 and again after the Iran war began in February.
Faridah Abdulkadiri
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