US begins marketing Venezuelan crude to global buyers
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Crude oil tankers anchored in Venezuela’s Lake Maracaibo on Jan 7.
PHOTO: AFP
- The US is now marketing Venezuelan crude globally with support from commodity marketers and banks, according to the Energy Department.
- This move follows plans to control Venezuela's oil sales post-Maduro and rebuild its infrastructure with US companies, costing $10B yearly.
- Sanctions will be relaxed for crude transport/sales and oil field equipment imports; Petroleos de Venezuela is negotiating sales with Washington.
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WASHINGTON - The US has begun marketing Venezuelan crude globally, a move that could make it one of the most powerful oil traders in the world.
“We have engaged the world’s leading commodity marketers and key banks to execute and provide financial support for these crude oil and crude products sales,” the Energy Department said in a fact sheet on Jan 7.
The decision follows the Trump administration’s announcement that it plans to control Venezuela’s future oil sales and manage the proceeds after the removal of former president Nicolas Maduro.
US President Donald Trump is pushing for US oil companies such as Chevron, ConocoPhillips and ExxonMobil to rebuild Venezuela’s infrastructure and revive production in the beleaguered nation, a significant undertaking estimated to cost US$10 billion (S$12.8 billion) a year over the next decade.
As part of the effort, the Energy Department said it would selectively roll back sanctions to enable the transport and sale of Venezuelan crude and oil products to global markets. The changes would also allow the import of select oil field equipment, parts and services.
Venezuela’s state oil company, Petroleos de Venezuela, said in a statement that it is in negotiations with Washington over crude sales through a framework that would be similar to its arrangement with Chevron, the only US oil major still operating in the country. BLOOMBERG
