US nears deal to secure stake in Venezuelan oil fields, insiders say

U.S. officials are reportedly close to finalising a deal that would give the United States long‑term access to a portfolio of Venezuelan oil fields, a move that could strengthen American fuel supplies for years but may face legal challenges under Venezuelan law.

The potential agreement, which is said to be in the final stages of negotiation, would allow U.S. companies to develop a group of Venezuelan oil fields that would be reserved for U.S. use. The deal would be structured around a “lease” model, with the fields to be allocated to American producers through an auction or tender process. The fields under discussion include 17 sites, some of which are green‑field prospects in the Orinoco Belt and others in the mature Lake Maracaibo basin. A small Chinese firm currently operates several of the Maracaibo sites under a contract signed during former President Nicolás Maduro’s administration.

White House officials have referred questions to the Department of Energy, but the U.S. Department of Energy, Venezuela’s oil ministry, state oil company PDVSA and Oil Minister Paula Henao have not yet responded. Caracas has reportedly been weighing the possibility of leaving the Organization of the Petroleum Exporting Countries (OPEC) as it seeks closer ties with Washington, a move that could have implications for its long‑standing membership and its ability to set production quotas.

Venezuela’s current hydrocarbon legislation does not allow for acreage leases, and the constitution reserves the core activities of the oil sector to the state. Recent reforms permit joint‑venture and production‑sharing arrangements, but the government has historically barred foreign firms from directly booking oil reserves. Experts say the proposed U.S. arrangement could raise constitutional questions and be subject to legal challenges in Caracas.

The Trump administration’s interest in the deal is part of a broader strategy to secure a steady supply of Venezuelan crude for U.S. refineries and to boost American investment in the country’s struggling energy industry, which currently produces about 1.25 million barrels of crude per day. The U.S. has also been looking for ways to replenish its Strategic Petroleum Reserve, a national emergency stockpile that has been depleted after the U.S. tapped it in 2022 following Russia’s invasion of Ukraine and again after the escalation of tensions with Iran. Funding shortages and ongoing maintenance have limited the administration’s ability to refill the reserve.

The timing of the negotiations comes amid rising gasoline prices that are a concern ahead of the November midterm elections. A secured supply of cheaper Venezuelan crude could help alleviate domestic fuel costs and support the U.S. economy. The deal, if signed, would be announced publicly at the earliest opportunity. However, the legal and constitutional hurdles in Venezuela may delay or complicate the final agreement. The outcome will be closely watched by industry analysts and policymakers who are monitoring the U.S. response to the evolving energy landscape in the Western Hemisphere.