US oil companies set conditions for investing in Venezuela — FT
Photo: Donald Trump, President of the United States (Getty Images)
US oil companies are demanding legal and financial guarantees from Donald Trump's administration to invest in Venezuela's oil sector, according to the Financial Times.
American businesses are concerned about Washington's active actions regarding Venezuela and Trump's calls to support his initiative to reform global energy markets.
On Wednesday, January 7, US officials held talks with the heads of leading oil companies in Miami. In addition, tomorrow, January 9, the heads of the country's largest energy groups will meet with Trump at the White House.
Sources told the agency that company executives want clear guarantees of investment protection before investing money in a country with high political and legal risks.
Concerns of US oil companies
Trump previously promised compensation from us or through revenues to US oil companies if they invest in Venezuela, but they remain cautious.
A private equity investor specializing in energy told the FT that no one wants to go there when a random tweet can change the entire foreign policy of the country.
At the same time, US oil company executives doubt that Venezuela's oil sector will recover quickly. They are concerned about political risks, an unstable legal environment, and low global oil prices.
US Energy Secretary Chris Wright said that the United States will sell Venezuelan oil indefinitely. According to him, the proceeds will benefit the Venezuelan people through accounts controlled by the US government.
On January 7, the US seized the Russian oil tanker Marinera, which was involved in transporting Venezuelan crude oil, after more than two weeks of pursuit in the Atlantic Ocean.
In addition, another tanker, the Sophia, also linked to sanctioned oil from Venezuela, was seized by the US in the Caribbean Sea as part of the same campaign.
