Trump Says US Oil Firms to Invest Billions in Venezuela After Maduro’s Overthrow

Florida, The Gulf Observer: US President Donald Trump said on Saturday that major American oil companies would invest billions of dollars in Venezuela’s energy sector following the overthrow of President Nicolás Maduro, according to media reports.

Speaking at a press conference at his Mar-a-Lago residence in Palm Beach, Trump said US oil companies would move quickly to repair and rebuild Venezuela’s deteriorated oil infrastructure. “We’re going to have our very large United States oil companies — the biggest anywhere in the world — go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure,” he said.

“Let’s start making money for the country,” the president added.

Trump claimed that US forces captured Maduro and his wife, Cilia Flores, during a large-scale overnight attack on Venezuela. He said both have been indicted on drug-trafficking charges in the Southern District of New York.

According to Trump, the United States will temporarily administer Venezuela during what he described as a transition period. “We will run the country until such time as we can do a safe, proper and judicious transition,” he said, adding that the US would oversee the process “with a group,” without providing further details.

The president said American oil companies would directly cover the costs of restoring Venezuela’s crude oil infrastructure and would later be reimbursed. “They will be reimbursed for what they’re doing,” he said.

Trump also said the goal was to rapidly increase oil output and exports. “We’re going to get the oil flowing the way it should be. We’ll be selling large amounts of oil to other countries, many of whom are using it now, but I would say many more will come,” he said.

Venezuela, a founding member of the Organization of the Petroleum Exporting Countries (OPEC), holds the world’s largest proven oil reserves. The country nationalized its oil industry in 1976, taking control of assets previously held by companies including ExxonMobil, Shell and Chevron, according to Andy Lipow, president of Lipow Oil Associates.

Venezuela’s oil production peaked at about 3.5 million barrels per day in the late 1990s but has since declined sharply. Current production stands at around 800,000 barrels per day, according to data from energy analytics firm Kpler, cited by oil analyst Matt Smith.

China and Russia also maintain a presence in Venezuela’s oil sector. Caracas approved a 15-year extension in November for joint ventures with Russian-linked companies operating oil fields in the country, Lipow said.