According to a report, the u.s. have seized several tankers of Venezuelan oil this week and the Whitehouse said they are working to selectively reduce u.s. sanctions that have restricted sales. Reportedly, officials say they have been coordinating with Venezuela’s interim government led by their former vice president, but that they intend to exert control over the sales.
According to the report, Venezuela has had a complicated relationship with international oil firms since the first major oil field of importance was discovered in 1914, which was followed by a massive influx of foreign oil companies. Reportedly, ExxonMobile and ConocoPhilips had their assets seized in 2007 after they declined to restructure their holdings to give pdsa, Venezuela’s state oil company majority control. According to the report, two waves of oil industry nationalism in the 1970s and 2000s forced many of them to hurriedly withdraw from the country leaving behind huge losses that they have yet to recoup.
According to the report, the u.s. president has suggested a $100 billion investment into Venezuela’s oil industry, but no major financial commitments were forthcoming. Reportedly, leaders of the biggest u.s. oil firms said that Venezuela represented an enticing opportunity but significant changes from a commercial and legal standpoint and a government that can ensure security would be needed to make the region an attractive investment.