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US pushes oil majors to invest big in Venezuela if they want to recover debts
U.S. firms must invest capital to revive Venezuela’s oil sector and gain compensation for $12 billion in expropriated assets, with recovery tied to political change, officials said.
- In recent weeks, White House and State Department officials told U.S. oil executives to return to Venezuela and invest capital to revive its oil industry and seek compensation for assets expropriated two decades ago.
- During the 2000s, Venezuela expropriated assets from international oil firms under Hugo Chávez, with Chevron staying through joint ventures with PDVSA while ExxonMobil and ConocoPhillips pursued $1.65 billion and $12 billion in arbitration.
- Despite large reserves, Venezuela's collapsed output fell from 3.5 million barrels per day in the 1970s to around 1.1 million barrels per day last year, and analysts say recovery could take years.
- Whether firms return will depend on how executives, boards and shareholders assess the risk, with officials saying companies must front rebuilding costs themselves, a costly step ConocoPhillips monitors amid global energy supply concerns.
- Reporting by Reuters framed the outreach amid the reported capture and removal of President Nicolás Maduro, noting legal questions and linking it to President Donald Trump's blockade of sanctioned oil tankers last month.
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US urges oil giants to invest in Venezuela to recover expropriated assets
In recent weeks, the White House and the State Department have informed US oil executives that to receive compensation for assets seized by Venezuela two decades ago, they would need to return quickly and invest substantial capital to help revive the country’s struggling oil industry. During the 2000s, Venezuela expropriated the assets of several international oil companies that refused to grant greater operational control to the state-owned oil…
Coverage Details
Total News Sources9
Leaning Left2Leaning Right1Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
L 29%
C 57%
14%
Factuality
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