President Donald Trump said late Tuesday that Venezuela will hand over up to 50 million barrels of oil to the U.S. worth $2.8 billion at market prices, after the capture of the the country’s authoritarian leader Nicolas Maduro.
A concerted effort to revive the ailing Venezuelan oil industry is an endeavor that would likely span many years and cost tens of billions of dollars
Chip Somodevilla/Getty Images
President Donald Trump said late Tuesday that Venezuela will hand over up to 50 million barrels of oil to the U.S. worth $2.8 billion at market prices, after the capture of the the country’s authoritarian leader Nicolas Maduro.
“I am pleased to announce that the interim authorities in Venezuela will be turning over between 30 and 50 million barrels of high quality, sanctioned oil, to the United States of America,” Trump said on social media.
“This oil will be sold at its market price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!” he added.
Trump said he had asked Energy Secretary Chris Wright to execute the plan “immediately” and that it will be “taken by storage ships, and brought directly to unloading docks in the United States.”
It was the latest signal of intent from the U.S. following the capture of Maduro, and is significant for China, too, which was previously the biggest buyer of Venezuelan oil. It could mean Beijing ends up having to pay more for its crude. Meanwhile, ABC News reported earlier this week that Trump had told Delcy Rodríguez, Venezuela’s new interim president, to sever economic ties with China, Russia, Iran and Cuba.
China’s foreign ministry said Venezuela has "full and permanent sovereignty over its natural resources and economic activities," adding that the U.S. demands for it to hand over its oil “violate international law."
Trump is scheduled on Friday to meet representatives from U.S. oil giants Chevron $CVX, ConocoPhillips $COP, and Exxon Mobil at the White House, The Wall Street Journal reports.
The president's latest comments come after he claimed the U.S. oil industry would be "up and running" in Venezuela in 18 months.
However, energy experts have said a concerted effort to revive the ailing Venezuelan oil industry is an endeavor that would likely span many years and cost tens of billions of dollars. The country's oil sector has been battered by U.S. sanctions, mismanagement, and corruption that has hollowed it of technical expertise. Venezuela's daily oil output hovers at about 900,000 barrels per day, less than half of its pre-Maduro highs, when it stood around 2 million barrels per day.
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