The Trump administration is in advanced negotiations with the Venezuelan government regarding a potential arrangement to access and develop crude oil reserves in the South American nation, according to Reuters sources with knowledge of the discussions. The proposed agreement would grant the US government control over specific Venezuelan oilfields to be operated by American energy companies, with the resulting production allocated for US consumption. Officials described the arrangement as potentially being formalized through a lease structure, followed by an auction process to assign individual fields among interested US producers.
The negotiation involves approximately 17 oilfields currently under consideration, spanning undeveloped areas within the Orinoco Belt region alongside established production zones in Lake Maracaibo. Some of these mature fields are presently operated by a Chinese company under contracts established during the previous Venezuelan administration. The White House deferred inquiries to the Energy Department, while Venezuelan government officials and the state oil company have not yet responded to requests for comment.
Venezuela’s potential departure from OPEC membership has been reported as part of its broader realignment toward strengthened relations with the United States. The nation, which maintains the world’s largest crude reserves but has not complied with OPEC production quotas for an extended period due to systemic challenges within its state-controlled oil sector, currently produces approximately 1.25 million barrels daily. The existing Venezuelan constitution reserves core hydrocarbon operations for state control, though recently enacted legislation permits foreign participation through joint ventures and production-sharing arrangements.
The proposed arrangement could present constitutional complications and invite legal scrutiny, according to analysis by experts familiar with Venezuelan law. Since the removal of the prior Venezuelan leadership in January, Washington has pursued a reliable Venezuelan crude supply for domestic refineries while encouraging American capital investment in the nation’s deteriorated energy infrastructure. The timing reflects pressure on the administration regarding elevated gasoline prices ahead of electoral considerations, with potential access to cheaper Venezuelan oil offering a remedy. Additionally, the US has explored methods to restore its Strategic Petroleum Reserve, which was drawn down following geopolitical developments in recent years.
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