United States President Donald Trump said Venezuela will turn over between 30 and 50 million barrels of oil currently held in storage due to US sanctions, adding that the oil will be sold at market prices and that he will control the resulting revenues.
Trump said the proceeds would be used to benefit both the people of Venezuela and the United States.
He added that he had instructed Energy Secretary Chris Wright to carry out the plan immediately. In a post on Truth Social on Tuesday, Trump said the oil would be loaded onto storage ships and transported directly to unloading docks in the United States.
The announcement follows Trump’s pledge to take back Venezuela’s oil reserves after his administration’s abduction of Venezuelan President Nicolas Maduro.
Trump has also said US oil companies are ready to invest billions of dollars to revive Venezuela’s struggling energy sector, which he has claimed was stolen from the United States. Under international law, the US has no ownership claim over Venezuela’s oil, although former president Hugo Chavez nationalised assets belonging to American firms.
Chevron, Exxon Mobil, and ConocoPhillips have not publicly commented on the plan, though US media reports say representatives of the companies are expected to meet Trump on Friday. Chevron remains the only major US oil company operating in Venezuela, producing about 150,000 barrels per day.
Energy analysts said the impact of the move is unclear.
Mark Finley of the Baker Institute said the significance depends on the timeframe, noting that 30 to 50 million barrels would be substantial over a month but modest over a year.
Scott Montgomery of the University of Washington said Trump’s remarks about controlling oil revenues added uncertainty.
Venezuela would need about $110 billion in investment to restore production to around two million barrels per day, according to Rystad Energy. The country holds the world’s largest known oil reserves but currently produces less than 1 percent of global supply.