US and Venezuela Negotiate Ownership of Oil Fields with Around 90 Billion Barrels

The Donald Trump administration is negotiating with Venezuela’s interim government to gain a share of ownership over the South American country’s oil reserves, Axios reports, citing two American officials.

The discussions have not yet concluded and a final agreement has not been reached. The focus is on more than a dozen oil fields currently in production, which are owned by Venezuela and were previously tied to Chinese power centers and interests.

These fields are estimated to hold around 90 billion barrels of oil. In total, Venezuela’s proven reserves are calculated at about 300 billion barrels.

The plan under consideration envisions the United States taking a share of ownership of the fields, while private companies, including American ones, take over the development and extraction of the oil. The Venezuelan government would also receive revenue from production.

Such a deal could have significant consequences for the US energy sector. According to Axios, the ownership stake that would pass to the United States could substantially expand American oil reserves.

The realization of the agreement could also impact Donald Trump’s political legacy, Axios assesses. The president has placed US energy security and autonomy, as well as the growth of American dominance in the Western Hemisphere, at the center of his policies.

Even before the January 3 arrest of Nicolás Maduro, who faces narco-terrorism charges in New York, Trump had privately discussed the possibility of securing a portion of Venezuela’s oil fields.

In July, senior officials from the US State Department and the Department of Defense held meetings in Caracas with their counterparts, where they discussed the details of the potential agreement.

The deadline for concluding the negotiations remains unclear. However, US Energy Secretary Chris Wright is expected to travel to Venezuela next week, a visit that could signal progress in the talks.