President Donald Trump insisted that American oil companies will invest some $100 billion to revitalize Venezuela’s oil industry.
This was detailed by the president from the White House, after a round table with executives from the main American energy companies, including Chevron, ExxonMobil, ConocoPhillips and the Spanish Repsol.
“They are going to invest their money, not our Government’s, they don’t need it, but they do need our protection,” said the Republican, adding that Washington will provide “government security” to the companies.
Despite the meeting at the White House, the heavyweights of the US oil industry have been skeptical about the possibility of investing in the South American country, due to uncertainty about its political future, the memory of a past of policies of nationalization of foreign assets and the low price of a barrel, according to US media reports.
Trump added that his Government will control which companies will be able to enter Venezuela.
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Venezuela has the largest proven crude oil reserves in the world, about 303 billion barrels, equivalent to 17% of the global total. Most of it is found in the Orinoco Belt, in the form of extra-heavy crude oil that requires advanced technology and large investments to be exploited.
Washington imposed sanctions on the Venezuelan oil industry in 2019, during Trump’s first term, as part of its pressure campaign to remove Nicolás Maduro from power.
Chevron is the only US oil company that still maintains operations in Venezuela and to which the Treasury Department (OFAC) has granted a license to import crude oil.
The oil giant agreed in 2007 to remain in the country, after then-president Hugo Chávez nationalized the last fields operated by the private sector, forcing large foreign companies to accept majority control of the State, through Petróleos de Venezuela (PDVSA), or leave the country.
The joint ventures of Chevron and PDVSA in Venezuela contribute around 27% of national production, about 242,000 barrels per day.
With information from EFE
