Exclusive: US secures initial $500 million Venezuelan oil deal, holding proceeds in Qatar
The Trump administration's inaugural sale of Venezuelan oil, valued at $500 million, signifies a pivotal moment in the administration's oversight of Venezuela following the US-led ouster of its former leader, Nicolás Maduro, 11 days prior. President Donald Trump has outlined a strategy to effectively govern Venezuela for an unspecified duration, seizing control of up to 50 million barrels of its oil. This entails marketing and selling the oil while allocating the proceeds back to Venezuela, a unique arrangement.
On Friday, Trump issued an executive order outlining measures to prevent courts or creditors from accessing revenue from these oil sales. Venezuela's substantial debt of up to $170 billion to international bondholders, oil companies, and others has been a deterrent for US firms willing to contribute to the country's infrastructure reconstruction.
Trump's stance is clear: the US will not consider past losses incurred by these entities, attributing them to their own actions.
The interim Venezuelan leadership, headed by Delcy Rodríguez, a former Maduro associate, has been cooperative since the US-Venezuelan energy deal was announced. The US leverages its position through sanctions and oil sales, according to an administration official.
Proceeds from the oil sales are currently held in US government-controlled bank accounts, as per the executive order. The primary account, according to a senior administration official, is located in Qatar, a neutral location facilitating unrestricted financial transactions with US approval, eliminating the risk of seizure.
The order specifies that at least a portion of the revenue will be held in US Treasury accounts.
White House spokeswoman Taylor Rogers emphasized the deal's historical significance, stating, 'President Trump brokered an energy deal with Venezuela, following Maduro's arrest, benefiting both nations.'
The administration is in ongoing discussions with oil companies regarding Venezuela. Despite skepticism from many companies about investing there, Trump's advisors remain optimistic about future deals and sales.
Chevron, the sole major US oil company operating in Venezuela, projects a 50% production increase within the next two years.
Treasury Secretary Scott Bessent assured that the department will oversee the accounts and manage the disbursement back to Venezuela, emphasizing the Treasury's role in ensuring funds reach their intended destination without exerting control over their distribution.
