The US administration is negotiating a deal to secure long-term access to some of Venezuela's crude oil reserves, according to sources cited by Reuters. The agreement is expected to allow American companies to develop a group of Venezuelan oilfields, ensuring a guaranteed supply for the US.
Sources indicate that discussions are occurring at high levels within both the US and Venezuelan governments. One source mentioned that a lease model is being considered for the deal, which may involve an auction or tender process to allocate the fields among US producers.
A list of 17 oilfields under negotiation includes new fields in the Orinoco Belt and mature areas in Lake Maracaibo, some of which are currently operated by a small Chinese firm under a contract established during the administration of former President Nicolas Maduro.
The White House has directed inquiries to the US Department of Energy, while Venezuela's oil ministry and state oil company PDVSA did not respond to requests for comment. Venezuelan oil minister Paula Henao was also unavailable for comment.
Reports suggest that Venezuela is considering leaving the OPEC oil production group as it seeks to strengthen ties with the US. Venezuela, a founding member of OPEC since 1960, has struggled to meet production quotas due to issues within its state-run oil industry.
Current regulations in Venezuela do not permit acreage leases for oil areas, with core industry activities reserved for the state. However, recent reforms allow for joint ventures and production-sharing contracts. The Venezuelan government has historically restricted foreign producers from booking the country's oil reserves.
Details of the potential deal between Washington and Caracas remain unclear, and experts warn it may raise constitutional questions and face legal challenges. Following the removal of former President Nicolas Maduro in January, the US has sought to secure a stable flow of Venezuelan crude for its refineries while encouraging American investment in Venezuela's energy sector, which currently produces approximately 1.25 million barrels of crude per day.
The US administration is facing pressure ahead of the November midterm elections due to rising petrol prices, which could be alleviated through increased oil supplies. Additionally, the US is exploring options to replenish its Strategic Petroleum Reserve, which has been depleted following taps due to geopolitical events, including Russia's invasion of Ukraine in 2022 and the conflict with Iran that began in February.