US negotiates stake in Venezuela oil fields, Bloomberg reports

US negotiates stake in Venezuela oil fields, Bloomberg reports

The discussions could give American companies long-term access to productive fields holding an estimated 90 billion barrels of proven reserves.

The US is negotiating to acquire a major ownership stake in Venezuela’s oil fields, Bloomberg reported. The discussions cover more than a dozen productive fields with an estimated 90 billion barrels of proven reserves.

Secretary of State Marco Rubio and Energy Secretary Chris Wright are leading the US talks, while Venezuela’s acting president Delcy Rodríguez represents Caracas, according to Bloomberg.

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The proposed structure could involve long-term leases under which private US companies would manage the fields and seek to increase production from roughly 1.25 million barrels a day. 

A deal could be reached as early as September, although the financial terms, security arrangements and legal structure remain unresolved.

The negotiations follow new contracts signed by SLB and Hunt Oil with Venezuelan entities in August. Bloomberg said the proposed investment would target oil infrastructure weakened by years of underinvestment and poor management.

Venezuela holds about 300 billion barrels of proven reserves, the largest national total in the world. Oil revenue remains central to the country’s finances, making production recovery a major objective of any agreement.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
US negotiates stake in Venezuela oil fields, Bloomberg reports
US negotiates stake in Venezuela oil fields, Bloomberg reports

The discussions could give American companies long-term access to productive fields holding an estimated 90 billion barrels of proven reserves.

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The US is negotiating to acquire a major ownership stake in Venezuela’s oil fields, Bloomberg reported. The discussions cover more than a dozen productive fields with an estimated 90 billion barrels of proven reserves.

Secretary of State Marco Rubio and Energy Secretary Chris Wright are leading the US talks, while Venezuela’s acting president Delcy Rodríguez represents Caracas, according to Bloomberg.

Advertisement

The proposed structure could involve long-term leases under which private US companies would manage the fields and seek to increase production from roughly 1.25 million barrels a day. 

A deal could be reached as early as September, although the financial terms, security arrangements and legal structure remain unresolved.

The negotiations follow new contracts signed by SLB and Hunt Oil with Venezuelan entities in August. Bloomberg said the proposed investment would target oil infrastructure weakened by years of underinvestment and poor management.

Venezuela holds about 300 billion barrels of proven reserves, the largest national total in the world. Oil revenue remains central to the country’s finances, making production recovery a major objective of any agreement.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.