Just one week after the arrest of President Nicolás Maduro, the Donald Trump administration has moved to institutionalize the restoration of the Venezuelan oil supply chain and the control over its revenues.
According to reports on January 11, the White House has officially announced that it will sell Venezuelan crude oil—which cannot be sold due to the US sanctions—on the international market and deposit the proceeds into a the US Treasury account.
President Donald Trump signed an executive order declaring a national emergency to protect these revenues from seizures or court orders. The White House stated that all withdrawals must be made under the approval of the US government and that the the US Secretary of State will determine how the funds are used.
Meanwhile, Reuters reported that the Donald Trump administration, in partnership with the global oil trading giant Vitol, has begun supplying naphtha—a material essential for oil production—stating that Vitol is scheduled to ship its first cargo of naphtha to Venezuela this weekend under a supply agreement with the US government.
Naphtha is a critical material used to dilute thick Venezuelan crude oil for easier transport and processing, and its supply had been cut off due to the US sanctions.
Previously, Donald Trump summoned major US oil companies, including ExxonMobil and Chevron, stating that he would personally select the companies to participate in the Venezuelan oil business. He encouraged these oil companies to invest at least $100 billion guaranteeing that their safety in Venezuela would be ensured by the US government.
In contrast, the oil companies are maintaining a cautious stance regarding large-scale investments, stating that investment in Venezuela is currently impossible and would require significant changes to the commercial framework and legal institutions.
