Washington (United States) (AFP) – The United States on Wednesday laid out what it called an “energy deal” with Venezuela, saying it will partially roll back sanctions to allow the sale of oil products from the South American country. The details, shared in a Department of Energy fact sheet, came days after Washington captured Venezuelan leader Nicolas Maduro, leaving his deputy and other allies in charge.
US President Donald Trump has since announced that the interim leaders have agreed to US-managed marketing of 30-50 million barrels of crude, repeatedly adding that his country will “run” Venezuela despite having no forces on the ground. Trump also said on social media Wednesday that Venezuela will be buying only US-made products with the money they receive from “our new Oil Deal,” including potential purchases of agricultural goods, medicine, and energy equipment.
Venezuela’s state petroleum firm separately said that talks for the sale of crude oil to the United States had begun, after Washington’s demand for access to the country’s reserves following Maduro’s ouster. “Negotiations are under way with the United States for the sale of volumes of oil within the framework of existing commercial relations between the two countries,” the firm, PDVSA, said in a statement.
US Energy Secretary Chris Wright noted, however, that Washington will control the sales of Venezuelan oil “indefinitely,” telling an event in Miami Wednesday that it needed leverage and control of these sales to drive necessary changes in Venezuela. Venezuela claims to sit on about a fifth of the world’s oil reserves.
Already, the US government has started marketing Venezuelan crude oil internationally, the Energy Department said. It added that all proceeds from the sale of the crude oil and oil products will “first settle in US controlled accounts at globally recognized banks.” “These funds will be disbursed for the benefit of the American people and the Venezuelan people at the discretion of the US government,” the department said, without providing further details.
The sales will also “continue indefinitely,” the fact sheet added. Wright separately told CNBC the United States was merely controlling the marketing and flow of funds into Venezuela, maintaining that the money will largely be used to benefit Venezuelan people. “We’re not stealing anyone’s oil,” he added.
Meanwhile, US diluting agents will flow into Venezuela as needed to “mix, upgrade, and optimize” production of Venezuela’s very heavy crude, Washington said. Wright, a former oil and gas executive, said it would require “tens of billions of dollars and significant time” to get Venezuela’s production back to historical highs of over three million barrels per day. Observers have also pointed out that a quick ramp-up of output would be hamstrung by issues including Venezuela’s creaking infrastructure, low prices, and political uncertainty.
For now, Washington is “selectively rolling back sanctions to enable the transport and sale of Venezuelan crude and oil products to global markets,” the Energy Department said. Among other efforts, the United States plans to authorize the import of certain oil field equipment, parts, and services to Venezuela, and said it would work to improve the electricity grid to aid oil production.
Separately, the White House told reporters Wednesday that the United States has “maximum leverage” over Venezuela’s interim authorities. Trump is expected to meet with US oil executives on Friday to discuss plans for Venezuela’s oil sector, Press Secretary Karoline Leavitt told a briefing. On Saturday, US special forces snatched Maduro and his wife from Caracas and whisked them to New York to face trial on drug charges. Washington appears to be relying on a naval blockade of Venezuelan oil exports, and the threat of potential further force, to ensure the cooperation of interim leader Delcy Rodriguez.
© 2024 AFP
