Venezuela Reportedly Plans to Exit OPEC, US Eyes Stakes in Its Oil Fields

Venezuela is reportedly planning to withdraw from the Organization of the Petroleum Exporting Countries, a significant blow to the oil cartel it co-founded in 1960 with Iran, Iraq, Kuwait, and Saudi Arabia.

According to a Bloomberg report on Wednesday, Caracas has been discussing the move with US officials, though no final decision has been made.

Meanwhile, a separate Axios report on Thursday said the Trump administration is negotiating with Venezuela's interim government to acquire stakes in the country's vast oil resources. While details have not been finalized, the discussions center on more than a dozen high-yield oil fields and do not involve all of Venezuela's 300 billion barrels of proven reserves.

These dozen-plus fields hold nearly 90 million barrels of proven reserves and were previously controlled by multiple indicted former Venezuelan leaders. Some stakes in these fields were once held by China.

In exchange for US ownership, Caracas would benefit from private companies, including US oil majors, developing these fields, bringing more oil revenue to the South American nation.

The White House did not immediately respond to a request for comment.

Washington Vows to Take Firm Control of Venezuelan Oil

As early as January, after the US captured Nicolás Maduro, Energy Secretary Chris Wright announced plans for Washington to take firm control of Venezuela's oil industry. Wright said the US would continue to oversee the sale of Venezuelan oil output "indefinitely." "We will put Venezuelan-produced oil on the market for sale," Wright stated.

The energy secretary emphasized that the revenue generated would be reinvested in Venezuela to benefit its people. He further explained that the US would provide diluents to restart production, allow imports of parts and services to stabilize Venezuela's oil industry, and ultimately create conditions for output growth and reinvestment by major US companies.

In April, Chevron Corporation agreed to an asset swap with Venezuela's state oil company to consolidate its vast oil position in the country. Under the deal, Chevron will raise its stake in Petroindependencia to 49% and gain extraction rights to the Ayacucho 8 area near the Petropiar project in the Orinoco Belt.

Meanwhile, the United Arab Emirates, OPEC's third-largest producer, exited the cartel in May, citing its current production policy and its current and future capacity as aligned with its national interests.