Under the reported arrangement, Venezuela’s interim government granted the venture a 100-year concession to operate the affected oil fields. The U.S. government would control 55% of the venture, through a combination of equity and the ability to acquire oil at cost.
The Trump administration says the arrangement could bring nearly $100 billion in private investment, increase U.S. oil supplies and eventually reduce energy prices. The administration also says the deal comes at no cost to U.S. taxpayers.
The agreement covers roughly one-fifth of Venezuela’s more than 300 billion barrels of proven reserves. Venezuela has the world’s largest proven oil reserves, but production has been constrained for years by underinvestment, deteriorating infrastructure, sanctions and the nationalization of foreign-owned assets.
The identity of the private operator involved in the joint venture has not yet been disclosed. Companies including Chevron, Repsol and Eni still have operations or interests in Venezuela, while other major oil companies remain wary after having assets nationalized under Hugo Chávez.
The deal is part of a broader U.S. effort to reopen Venezuela’s oil industry to foreign investment following the January U.S. military operation that removed Nicolás Maduro and installed Delcy Rodríguez as interim president.
Source: cbsnews.com/news/trump-venez…