US Pledges to Tap Venezuela's Oil Reserves Amid Uncertain Terms
The Trump Administration has announced plans to take partial control of Venezuela's oil reserves through a private company majority-owned by the US. The deal involves 65 billion barrels of oil, but most of it is extra-heavy oil that produces at a much lower rate than conventional fields.
According to experts, reaching an initial target production of 1.5 million barrels per day (mb/d) would require significant investments, potentially exceeding $100 billion over several years. The US government has hinted at providing guarantees for investors, but the level of political risk remains unclear.
The deal's terms are still uncertain, with conflicting reports on its length: the White House suggests 100 years, while Venezuela's acting president claims it is a 25-year agreement. Critics argue that paying 'cost' for oil produced would be exploitative and lead to renegotiation demands.