Venezuelan oil sales to US to start immediately, continue indefinitely, Trump official says

The plan involves an initial shipment of up to 50 million barrels, with US sanctions eased to allow continued oil exports.

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WASHINGTON: Venezuelan oil sales to the United States will start immediately with an initial shipment of approximately 30 million to 50 million barrels and will continue indefinitely, a senior Trump administration official told Reuters on Wednesday (Jan 7).

Trump on Tuesday unveiled a plan to refine and sell up to 50 million barrels of Venezuelan oil that had been stuck in Venezuela under US blockade.

The official said that US sanctions on Venezuela will be selectively eased to help facilitate the supply and trade of Venezuelan crude and oil products to global markets.

Such oil exports which would be routed to the United States under the arrangement would have previously gone to China, according to CNBC, which first reported the news.

06:49 Min

The US president unveils a plan to sell up to 50 million barrels of Venezuelan oil - worth around US$2 billion to Washington. Jagruti Dave reports on how Venezuela’s oil reserves are shaping US involvement in the country. Meanwhile CNA’s Tan Yew Guan has more on China's response to reports that Trump is demanding Caracas cut ties with Beijing.

Energy Secretary Chris Wright said on Wednesday the US wants to get Venezuelan oil flowing again, deposit money into US-controlled accounts and create conditions for US oil companies to enter the country.

Over the weekend, Trump said the US would "take control" of Venezuela after US forces ousted Venezuelan President Nicolas Maduro, a step that could give US energy companies access to the country's vast oil reserves.

Venezuela was producing as much as 3.5 million bpd in the 1970s. But mismanagement and limited foreign investment led to a huge drop in annual production, which averaged about 1.1 million bpd last year.

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