US Inches Closer to Securing Long-Term Access to Venezuela's Oil Reserves
The Trump administration is close to securing long-term access to a portion of Venezuela's oil reserves, according to sources familiar with the negotiations. The deal would allow US companies to develop a group of Venezuelan oilfields and guarantee a supply of oil for the United States.
The agreement is expected to operate through a 'lease' model, with a separate auction or tender to allocate each field among US producers. A list of 17 fields in negotiation includes green areas in the Orinoco Belt and mature areas in Lake Maracaibo, some currently operated by a small Chinese firm.
Venezuela is considering leaving OPEC as it strengthens ties with the US, Bloomberg reported. Venezuela has not met OPEC quotas for years due to its state-run oil industry's neglect and corruption.
Experts warn that the deal could raise constitutional questions and face legal challenges under current hydrocarbons regulation in Venezuela, which reserves core activities to the state.