Politico: Trump requires US companies to return to Venezuela to receive compensation
The administration of US President Donald Trump is preparing to provide support to US oil companies that are waiting for compensation for assets seized from them in Venezuela years ago in exchange for returning to the country and making huge investments in the oil sector.
Politico quoted officials as saying that US oil companies’ access to compensation was tied to conditions set by the Trump administration.
The Trump administration had told oil company executives that companies wishing to receive compensation for drilling rigs, pipelines and other assets confiscated should be prepared to return to the ground to rebuild Venezuela’s crumbling oil infrastructure.
Industry representatives are looking cautiously at the Trump administration’s conditional support amid political uncertainty and security risks, as well as the severe deterioration of infrastructure inside Venezuela.
“The message is clear, if you want compensation, you should go back to the field,” said an oil sector official, noting that this offer has been on the table for about ten days.
Although Venezuela has the world’s largest proven oil reserves, its producing far below its potential, as a result of deteriorating infrastructure, international sanctions, and a lack of investment.
According to data from the US Energy Information Administration, Venezuela has about 303 billion barrels of proven crude oil reserves, making it the largest globally as of 2023.
Trump said on Saturday: “We’re going to bring the giant US oil companies into Venezuela, and they’re going to spend billions of dollars to fix the oil infrastructure, and then they’re going to start bringing financial returns to the country”.
Trump said the United States would continue to run things in Venezuela until a safe, appropriate and reasonable transition of power was achieved.
The US Department of Justice has published an indictment document against Maduro and his wife, accusing Maduro of “leading a corrupt and illegitimate government for years and of cooperating with the world’s most dangerous drug traffickers and terrorists”.
