U.S. President Donald Trump’s plan to seize direct control of Venezuela’s oil reserves is prompting warnings that the Latin American nation will become a modern-day resource colony akin to the banana republics of a century ago — something that could create long-term risks for oil companies operating there.
Trump said late Friday that a deal had been reached with Venezuela’s interim president, Delcy Rodríguez, in which the U.S. will control more than 65 billion barrels of oil “through a partnership with private business.”
Although additional details are scarce, the plan is stunning in its size and ambition. The new venture will have a 100-year concession over 17 oil fields, making it the second-largest corporate holder of proven reserves after Saudi Aramco, according to a U.S. official.