US Closes In on Deal to Secure Venezuelan Oil Supplies

The US government is close to finalizing a deal that would secure long-term access to a portion of Venezuela's oil reserves. The agreement, which could be signed soon, aims to let American companies develop and operate a group of Venezuelan oilfields in exchange for guaranteed crude supply to the US.

According to sources with knowledge of the negotiations, the deal is being discussed at the highest levels between the US and Venezuelan governments. A 'lease' is being considered as the legal model to make the deal work, with a further auction or tender to allocate each field among US producers.

The list of 17 fields in negotiation includes green fields in the vast Orinoco Belt combined with mature areas in Lake Maracaibo, some of which are currently operated by a small Chinese firm. The White House referred questions to the US Department of Energy, while Venezuela's oil ministry and state oil company PDVSA did not immediately reply to requests for comment.

Venezuela is considering leaving OPEC as it strengthens ties with the US, a move that could raise constitutional questions and face legal challenges, according to experts. The deal could lower the cost of oil imports and ease rising gasoline prices in the US ahead of midterm elections scheduled later this year.