Trump administration negotiates for US stake in Venezuelan oil sector

The Trump administration is reportedly in talks to secure a stake in Venezuela's oil sector, a move that could significantly bolster US oil reserves. The negotiations involve over a dozen producing oil fields with estimated reserves of 90 billion barrels, representing about a third of Venezuela's total proven reserves of 300 billion barrels.

According to Axios, citing two unnamed US officials, the proposed deal would involve private companies, including American firms, operating these fields in exchange for a US ownership share. This arrangement aims to return more oil revenue to Venezuela. The United States' strategic petroleum reserve is currently at a 40-year low, making such a deal potentially impactful for US energy security.

Venezuela holds the world's largest proven oil reserves. The reported negotiations come as Venezuela's interim president, Delcy Rodriguez, seeks to attract foreign investment, especially in the energy sector, nearly eight months after the US-backed operation that ousted former leader Nicolás Maduro. Rodriguez faces significant pressure from Trump, who is keen on gaining control of the country's oil industry.

While the Trump administration encourages US companies to invest in Venezuela, many remain cautious due to the country's dilapidated infrastructure and past instances of the Caracas government expropriating foreign investors' assets. Chevron, the sole US oil company still operating in Venezuela when Maduro was ousted, reported in July that it had increased its crude oil production to 280,000 barrels per day and plans a 50% increase by the end of 2028.