Venezuela and the U. S. : A New Oil Deal in the Making

Key Points:

• PDVSA (Venezuela's state oil company) is in discussions with the U.S. about selling oil.
• The U.S. has made a deal with Venezuela's new interim president, Delcy Rodriguez, to buy up to $2 billion worth of Venezuelan crude.
• The U.S. seeks full access to Venezuela's oil industry, but PDVSA insists on fair market prices.

Terms of the Deal

• PDVSA has stated that any oil sales to the U.S. will follow the same rules as deals with other foreign companies, such as Chevron.
• Chevron is currently the only company exporting Venezuelan oil to the U.S. due to sanctions.
• Wills Rangel, a PDVSA board member, emphasized that the U.S. must pay international prices for Venezuelan oil, not a special rate.

Venezuela's Stance

• Rangel made it clear that Venezuela does not owe the U.S. anything and that the U.S. should not act like Venezuela's oil belongs to them.
• Despite U.S. sanctions, Chevron has a special license to export Venezuelan crude.
• Most of Venezuela's oil goes to China, but the U.S. blockade has made those exports difficult.

Future of the Deal

• PDVSA says the talks are going well and that any deal will be fair and transparent.
• They want to ensure both countries benefit from the agreement.
• The U.S. wants more access to Venezuela's oil, but Venezuela is standing firm on its terms.
• It will be interesting to see how this deal plays out.