US completes 1st sale of Venezuelan oil worth $500 million
What's the story
The United States has completed its first sale of Venezuelan oil, worth $500 million, CNN reported. The deal comes after the recent US military action in Venezuela that led to the capture of President Nicolas Maduro. The Trump administration plans to use Venezuela's vast oil reserves to rebuild its energy sector, with President Donald Trump announcing a $100 billion investment from the oil industry for this purpose.
Investment doubts
US energy executives express skepticism over Venezuelan investment
However, US energy executives have expressed skepticism about investing in Venezuela due to legal and commercial hurdles. ExxonMobil CEO Darren Woods called it "uninvestable" and said frameworks would need to be established to understand potential returns on investment. Following a lengthy White House meeting on Friday, Trump and his senior aides emerged with no substantial commitments from companies to invest billions in Venezuela.
Ongoing discussions
White House confirms ongoing discussions with oil companies
Despite the skepticism, White House spokesperson Taylor Rogers confirmed that "President Trump's team is facilitating positive, ongoing discussions with oil companies that are ready and willing to make unprecedented investments." "President Trump is protecting our Western Hemisphere from being taken advantage of by narcoterrorists, drug traffickers, and foreign adversaries," he added. Maduro and his wife, Cilia Flores, have been charged with conspiracy to smuggle cocaine, possession of machineguns and destructive devices. Maduro is also charged with narco-terrorist conspiracy.
Investment encouragement
Oil sold at discount
Reuters on Wednesday reported that the first sale of Venezuelan crude oil was offered at a discount compared to other countries' offerings. The proceeds from this deal are reportedly being held in American bank accounts, including one in Qatar. Trump had said the US would refine and sell up to 50 million barrels of crude stuck in Venezuela under the US blockade.