Newsletters
U.S. oil companies are preparing to move quickly back into Venezuela’s energy sector as a potential rollback of sanctions is likely to enable the sale and repatriation of Venezuelan oil, Treasury Secretary Scott Bessent said.
"I think it's going to be the typical progression where the private companies can move quickly and will come in very quickly," Bessent said, adding that many of these firms have not raised concerns over financing.
After then-Venezuelan President Nicolas Maduro’s capture and arrival in New York City, where he remains in custody on drug trafficking charges, the Trump administration intensified efforts to open up Venezuela’s oil sector, which holds the world’s largest proven reserves but has had limited impact on global markets due to sanctions-driven underinvestment.
While oil majors such as ExxonMobil remain cautious, largely due to past nationalizations of their assets in Venezuela, smaller, privately held companies are seen as more agile and willing to reengage, Bessent told Reuters.
Chevron, which has maintained a longstanding presence in Venezuela despite sanctions and operational risks, is also expected to boost its activity. Bessent pointed to Chevron as a key player likely to deepen its engagement.
"Chevron has been there a long time and will continue to be there, so I believe that their commitment will greatly increase," Bessent stated.
Existing U.S. sanctions had barred international banks and creditors from dealing with the Venezuelan government without licenses, limiting financial access.
On the matter, Bessent said the Treasury is analyzing how to enable the sale of Venezuelan oil stored offshore and how to return the proceeds to the country.
"We’re de-sanctioning the oil that’s going to be sold," Bessent said, adding, "How can we help that get back into Venezuela to run the government, run the security services, and get it to the Venezuelan people?"
Asked about the timing, Bessent said that additional sanctions could be removed "as soon as next week," though he did not specify which ones.
Bessent also noted that nearly $5 billion in Venezuela’s IMF SDRs could be used for economic recovery and that he would meet IMF and World Bank leaders next week to discuss re-engagement, adding that the U.S. Export-Import Bank might help guarantee oil sector financing.
On Friday evening, President Donald Trump signed an executive order blocking courts and creditors from seizing Venezuelan oil revenues held in U.S. Treasury accounts, ensuring the funds are preserved.
Set as preferred source
1 min read
1 min read
