The United States has announced plans to take long-term control of Venezuelan oil sales, signalling a major escalation in Washington’s intervention in the South American country’s energy sector following the seizure of former president Nicolás Maduro.
US Energy Secretary Chris Wright said Washington would oversee the sale of crude oil currently in storage in Venezuela as well as future production, with proceeds paid into bank accounts controlled by the US government.
Speaking at an energy conference in Miami, Wright said the funds could later be channelled back into Venezuela but stressed that US control of oil revenues was necessary to drive political and economic changes in the country.
President Donald Trump later said Venezuela would be required to use the proceeds from oil sales exclusively to buy American-made goods, effectively tying the country’s energy income to US trade.
Venezuela’s state oil company, PDVSA, confirmed it is in negotiations with Washington to sell crude oil, describing the talks as commercial transactions similar to existing arrangements involving Chevron and other international firms.
As part of the policy shift, Washington said it would authorise oil services, equipment and spare parts imports to help reverse years of production decline, as it rolls back some sanctions on Venezuelan crude.
The move is expected to benefit US oil services companies and commodity traders with previous operations in Venezuela, including Halliburton, SLB, Baker Hughes, Weatherford International and Vitol.
Oil prices fell following the announcement amid expectations of increased Venezuelan supply, while shares of US refiners capable of processing heavy crude rose. US officials said Venezuela could add several hundred thousand barrels per day in the short to medium term, though rebuilding the sector would require tens of billions of dollars in investment.