The Trump administration is engaged in preliminary discussions with Venezuela’s interim government regarding potential equity participation in the country’s oil sector, according to a report by Axios citing two U.S. officials.
The negotiations, reported on August 27, follow recent crude oil transfers near Venezuela’s northeastern coast, including two supertankers observed off the Borrachas Islands on August 9, 2026. These shipments occurred despite existing U.S. sanctions on Venezuela’s oil industry, which have been periodically adjusted by Washington.
The talks come as the administration reviews its approach to Venezuelan oil sanctions, which were tightened in 2024 following disputed elections. While no formal agreement has been reached, the discussions signal a potential shift in policy toward greater U.S. involvement in Venezuela’s energy infrastructure.
Venezuela holds the world’s largest proven oil reserves, estimated at over 300 billion barrels, though production has declined significantly in recent years due to underinvestment and sanctions. The country’s oil output stood at approximately 700,000 barrels per day in mid-2026, down from around 1.9 million barrels per day in 2016.
Any U.S. equity stake would require congressional approval and would likely be structured as a joint venture with Venezuela’s state-owned oil company, PDVSA, or its successor entities. The administration has not disclosed details on the proposed stake size or financial terms.
The discussions follow a broader review of U.S. sanctions policy toward Venezuela, which has included periodic waivers for certain oil-related transactions to allow for humanitarian exemptions.
