USA and Venezuela Move Closer on Major Oil Deal

Reasons cited for the low output include outdated infrastructure, years of underinvestment, as well as mismanagement and international sanctions. The state oil company PDVSA has struggled for years with technical problems, corruption allegations, and a lack of foreign currency for maintaining its facilities.

The Negotiating Parties

On the Venezuelan side, Vice President Delcy Rodríguez is leading the negotiations. She had repeatedly stressed in recent weeks that Caracas was open to cooperation with international partners, provided that national sovereignty was preserved. Nicolás Maduro, who has ruled the country since 2013, also expressed a fundamentally positive stance toward foreign investment.

From the USA, Secretary of State Marco Rubio traveled to Caracas to provide political support for the talks. According to sources close to the matter, Rubio met with senior representatives of the Venezuelan government as well as with members of the opposition, which has long pushed for political change.

The rapprochement is also rooted in a shift in Washington's foreign policy. The Trump administration had already eased sanctions against individual Venezuelan officials and expanded licenses for foreign oil companies that are permitted to operate in Venezuela under certain conditions.

Risks and Strategic Significance

At the same time, observers warn of significant risks: Production in the vast oil sands of the Orinoco Belt requires heavy investment and modern technology. In addition, the political situation in Venezuela remains unstable, calling into question the long-term reliability of any agreement.

Energy experts nevertheless see the potential deal as a strategic move. The USA could reduce its dependence on oil imports from the Middle East while simultaneously pushing back the influence of Russia and China in the Western Hemisphere — both of which have invested increasingly in Venezuela's energy sector in recent years.

It remains open which US companies will concretely benefit and what conditions Caracas will accept in return. According to reports, a possible debt relief package for Venezuela or direct US aid for modernizing infrastructure are also under discussion.

Outlook on a Possible Agreement

A White House spokesperson stated that the talks were in a decisive phase. A formal agreement is expected "in the coming weeks."

Should the contract actually be signed, it would be one of the most extensive bilateral energy agreements in decades. The impact on the global oil market could be significant, as Venezuela could substantially increase its production in the medium term — provided the necessary investments flow and sanctions are eased.