U.S. Completes First $500 Million Sale Of Venezuelan Oil After Maduro’s Arrest

The United States has completed its first sale of Venezuelan crude oil, valued at approximately $500 million, a U.S. administration official has confirmed.

The transaction marks the initial phase of Washington’s plan to sell sanctioned Venezuelan oil following the recent capture of President Nicolás Maduro.

Officials said further oil sales are expected in the coming days and weeks.

The completed transaction forms part of an oil arrangement worth around $2 billion that was agreed earlier this month between Washington and Caracas.

Revenue generated from the first sale is being held in bank accounts controlled by the U.S. government, according to an administration official, who cited an executive order issued last Friday.

An industry source familiar with the plan said the primary account is located in Qatar, which was selected as a neutral location where funds can be transferred with U.S. approval and without the risk of seizure.

President Donald Trump has publicly stated that the United States intends to sell between 30 million and 50 million barrels of Venezuelan oil in cooperation with American companies.

He has also indicated that the U.S. oil industry could invest at least $100 billion to rebuild Venezuela’s damaged energy sector.

The White House said the administration is facilitating discussions with U.S. oil companies that are prepared to invest in restoring Venezuela’s oil infrastructure.

However, senior U.S. oil executives have expressed concerns about returning to the country. During a meeting at the White House last week, ExxonMobil’s chief executive told officials that Venezuela remains commercially unviable due to the absence of stable legal and commercial frameworks.

Other executives attending the meeting also raised doubts about investing in Venezuela, citing legal uncertainty and unclear returns.

Following the discussions, no major commitments were announced by oil companies to invest large sums in the country.

According to the White House, proceeds from Venezuelan oil sales will be divided between Venezuelans, U.S. companies and the U.S. government, with allocations determined by federal authorities.

President Trump has said any funds directed to Venezuela would be used solely to purchase American-made goods.

Reuters reported on Wednesday that Venezuelan crude is currently being offered at a discount compared with oil from other producers, including Canada, as the United States seeks buyers for the sanctioned supply.

References: CBS News, CNN

Source: Maritime Shipping News