Trump administration pursues “gigantic” deal with Caracas that would give US ownership rights over South American oil fields.
A “gigantic” proposition
The Trump administration is engaged in discussions with Venezuelan authorities over acquiring an ownership stake in the South American nation’s colossal oil reserves, according to a report by the US news outlet Axios, citing sources familiar with the matter.
Two American officials have confirmed that negotiations are underway with Venezuela’s interim government regarding a share of ownership in the country’s immense petroleum resources. One government employee reportedly described the scale of the potential arrangement in stark terms: “To call this deal major would be an understatement. It is gigantic.”
The two sides are currently working through the finer details of a prospective agreement. Discussions are said to encompass more than a dozen Venezuelan oil fields, which boast confirmed reserves of 90 billion barrels. According to Axios, a portion of these resources was previously controlled by the People’s Republic of China.
Key players and diplomatic manoeuvres
The timeline for Washington and Caracas to finalise any accord remains uncertain. The principal figures leading the negotiations are US Secretary of State Marco Rubio and Venezuela’s interim president, Delcy Rodríguez. White House Deputy Chief of Staff Stephen Miller is also reported to be playing a significant role in the process.
Diplomatic activity has intensified in recent months. In July, senior officials from the US State Department and the Pentagon travelled to Caracas to meet with their Venezuelan counterparts to discuss specific details of the agreement. The US Energy Secretary, Chris Wright, may visit Venezuela as early as next week to continue consultations.
A deal for the “Western Hemisphere”
It is anticipated that, in exchange for granting the US access to ownership rights, the Venezuelan government would benefit from collaboration with private companies, including American firms, and secure increased revenue from oil sales.
However, officials in Washington are reportedly concerned about the perception that Venezuelan authorities might be ceding national resources to the United States. One source sought to allay such concerns, stating: “We will make every effort to show the benefit this brings to the Venezuelan people, because it truly does.”
Another source summarised the administration’s broader ambition, claiming: “President Trump is close to securing the future of American energy for generations to come; not just for the US, but for the entire Western Hemisphere.”
