As part of preparations to ease long-standing sanctions on Venezuela’s crude oil in global markets, the United States has announced it will retain control over the sale of the South American nation’s sanctioned oil “indefinitely.” The White House confirmed the decision in an official statement on Wednesday.
Officials indicated that in the initial phase, between 30 and 50 million barrels of oil could be sold, with the proceeds from these sales held under the control of the US government. The move is designed to maintain leverage over the Venezuelan government while facilitating gradual economic reforms in the country.
US Secretary of Energy Chris Wright explained the rationale, stating, “The changes that must inevitably occur in Venezuela require that we retain a degree of influence and oversight over its oil resources.” Analysts suggest that the sales could generate approximately $2.8 billion (roughly £2.1 billion), although it remains unclear how much of this revenue will directly benefit the Venezuelan state.
The White House press secretary, Caroline Levitt, emphasised that “an agreement has been reached between the two parties,” signalling a formal understanding at the diplomatic level. Nevertheless, Venezuela’s state-owned oil company, Petróleos de Venezuela S.A. (PDVSA), issued a statement clarifying that discussions regarding the sale of oil are ongoing and that operations remain within the framework agreed upon by both countries.
PDVSA added that the process is being conducted in accordance with existing regulations governing international oil companies, ensuring compliance with global trade and financial standards. The company also highlighted that details regarding the distribution of proceeds and operational oversight are still being finalised.
The decision comes amid increasing international pressure to stabilise global oil markets while simultaneously applying measured influence over Venezuela’s political and economic reforms. Experts note that the US’s indefinite control over Venezuelan oil sales represents a significant lever, allowing Washington to shape the flow of crude without fully lifting sanctions.
Projected Venezuelan Oil Sale – Phase One
| Parameter | Value |
|---|---|
| Estimated Volume of Oil | 30–50 million barrels |
| Estimated Revenue | $2.8 billion (£2.1 billion) |
| Control of Proceeds | US Government |
| Status of Agreement | Formal understanding, discussions ongoing |
| PDVSA Involvement | Operating within existing frameworks |