Trump pitches Venezuela oil to US majors – and hits scepticism

WASHINGTON: US President Donald Trump pressed top oil executives on Friday (Jan 9) to invest in Venezuela’s vast reserves, but was met with a cautious reception – with one major CEO dismissing the country as “uninvestable” without sweeping reforms.

Trump told the industry leaders that his administration – not Caracas – would decide which firms are allowed to operate in Venezuela following the capture of president Nicolas Maduro.

“We’re going to be making the decision as to which oil companies are going to go in … (we’re) going to cut a deal with the companies,” Trump said at the White House, arguing that foreign firms had faced no meaningful protections under Maduro.

“But now you have total security. It’s a whole different Venezuela,” he added.

Trump said oil companies would “deal with us directly”, signalling that the US government would attempt to cut the oil-rich, cash-poor Latin American nation completely out of the loop when it came to exploiting its own resources.

Despite Trump’s assurances, ExxonMobil chief executive Darren Woods struck a note of scepticism, saying major reforms would be needed before companies could justify returning to Venezuela.

“We’ve had our assets seized there twice and so, you can imagine, to re-enter a third time would require some pretty significant changes,” he said.

“If we look at the legal and commercial constructs and frameworks in place today in Venezuela – today, it’s uninvestable.”

The White House meeting came less than a week after US forces seized Maduro, with Trump making no secret that control of Venezuela’s oil was central to his actions.