Washington: The Trump administration is negotiating a long-term stake in a large share of Venezuela's oil fields in a potentially costly and legally challenging arrangement, media reports said Friday. The US would acquire long-term contracts covering about one-third of Venezuela's oil reserves, giving Washington access to roughly 90 billion barrels of crude under terms being discussed, according to those familiar with the talks cited by The Washington Post.
According to Anadolu Agency, a list shared with the Post includes 17 oil fields in which the US would take a stake. Several of the fields have little or no infrastructure, or access to transportation hubs needed to process and move crude. Existing facilities have suffered from years of neglect, theft, and equipment deterioration, according to the report.
The potential agreement could also face legal obstacles in Venezuela, where there is strong opposition to transferring control of natural resources to the US. Changes to Venezuela's Constitution may be required before the deal can be finalized, according to the report.
The talks are being led by US Secretary of State Marco Rubio and Venezuela's Acting President Delcy Rodriguez. Energy Secretary Chris Wright is expected to travel to Venezuela next week, while Rubio and Wright are reportedly hoping to soon announce an agreement. Some energy industry officials, however, remain skeptical that a substantial deal can be reached that quickly.
Under the arrangement being discussed, private companies, including US firms, would develop the fields through an existing joint-venture structure. Venezuela would retain a significant share of the resulting revenues, according to the newspaper.
The negotiations come as the Trump administration seeks to increase US access to Venezuelan oil and strengthen American energy security amid disruptions to global oil supplies. Venezuela has the world's largest proven oil reserves, but production has remained far below its potential after years of underinvestment, mismanagement, and deterioration of its oil infrastructure.
Despite the administration's efforts to attract investment following the US capture of former President Nicolas Maduro in January, Venezuelan oil production has increased by only about 200,000 barrels per day in the last year, according to the Post. The potential agreement also faces opposition in the US, where Democrats have criticized the administration's dealings involving Venezuela's natural resources.
The administration has previously announced major US stakes in foreign energy and natural-resource projects, including Ukraine's critical minerals and Westinghouse. But little has materialized from those deals, according to the Post.