Venezuelan oil exports to the United States will begin immediately with an initial shipment of roughly 30 million to 50 million barrels and are expected to continue on an open-ended basis, a senior official from the Trump administration told Reuters on Wednesday.
President Donald Trump announced on Tuesday a plan to refine and sell up to 50 million barrels of Venezuelan crude that had remained stranded in the country under U.S. restrictions.
According to the official, U.S. sanctions on Venezuela will be selectively relaxed to support the flow and trade of Venezuelan crude oil and refined products into global markets.
Under the arrangement, shipments routed to the United States would largely replace exports that previously went to China, according to a report by CNBC, which first disclosed the development.
U.S. Energy Secretary Chris Wright said on Wednesday that Washington aims to restart Venezuelan oil flows, channel revenues into U.S.-controlled accounts, and create conditions that would allow American oil companies to operate in the country.
Over the weekend, Trump said the United States would “take control” of Venezuela after U.S. forces removed President Nicolas Maduro, a move that could open access for U.S. energy firms to Venezuela’s vast oil reserves.
Venezuela produced as much as 3.5 million barrels per day in the 1970s, but years of mismanagement and a lack of foreign investment sharply reduced output. Production averaged around 1.1 million barrels per day last year.
