U.S. Negotiates Direct Equity Stake in Select Venezuelan Oil Fields
U.S. officials are in talks with Venezuela's interim government about acquiring equity stakes in high-output oil fields containing about 90 billion barrels of proven reserves, a move that could expand U.S. control of global oil supplies.
U.S. senior officials are reportedly negotiating with Venezuela's interim government to obtain direct ownership stakes in a group of high-yield oil fields that hold roughly 90 billion barrels of proven crude. The fields are part of Venezuela’s larger 303-billion-barrel reserve base, which is the world’s largest.
If the talks succeed, the arrangement would extend the White House’s "Energy Dominance" strategy beyond domestic deregulation and shale expansion to include foreign equity acquisition in the Western Hemisphere. The move comes as the Strategic Petroleum Reserve is at historically low levels and geopolitical tensions affect Middle-East supply routes.
Energy analysts note that reviving the deteriorated midstream and downstream infrastructure would require substantial investment. Rystad Energy estimates around $180 billion in capital over the next decade to raise production capacity, while even modest upgrades could need more than $50 billion over 15 years.
Major oil companies such as ExxonMobil and ConocoPhillips are said to be cautious because of past expropriations and legal uncertainties. Independent firms, including SLB, Hunt Oil and Pacific Coast Energy Company, have begun signing exploration and service agreements with Venezuela’s state oil firm PDVSA. Under the proposed framework, private firms would manage field development and logistics, with a share of revenues returned to Caracas.
"Energy Secretary Chris Wright is scheduled to meet with officials in Caracas next week to discuss logistics for accelerating field rehabilitation," the report said.
Analysts caution that any near-term production increase is likely to be modest until broader infrastructure and legal issues are resolved.