The Russian company representing Moscow’s oil interests in Venezuela has refused to turn over control of its production there to the United States, after US President Donald Trump said that his administration will manage all aspects of the production and export of Venezuelan oil.
According to a report in the Wall Street Journal, Trump and his advisers have discussed an initiative that would give the United States effective stewardship over large parts of Venezuela’s state-run oil industry, Petróleos de Venezuela SA (PdVSA), just days after US forces captured Venezuelan leader Nicolás Maduro.
Roszarubezhneft, the state-owned Russian company that handles all of the country’s foreign exploration and drilling, pushed back, saying it will “continue to consistently fulfill its commitments in close coordination with its international partners, giving priority to the sustainable development of joint oil production projects, infrastructure and an effective response to emerging challenges,” The Moscow Times reported.
The company insisted that all its assets are still owned by the Russian state and that it will continue to work alongside Venezuela’s acting president, Maduro’s vice president Delcy Rodriguez, “to implement joint projects and expand industrial and technological co-operation on the principles of equality, mutual respect for property and protection of investments.”
If Trump’s policy were successfully implemented, the strategy could place much of the Western Hemisphere’s oil reserves under US influence, when combined with production already controlled by American companies elsewhere. Administration officials view this as a way to block Russia and China from Venezuela’s energy sector while strengthening Washington’s leverage over global oil supply.
The US president’s oil policy in Venezuela is inching forward only slowly, facing scrutiny from certain energy executives invited to the White House last week who were wary of Venezuela’s legal environment.
“If we look at the commercial constructs and frameworks in place today in Venezuela, today it’s un-investable,” Darren Woods, the CEO of ExxonMobil, said in a press conference after the discussions.
Consequently, Trump said on Sunday that he might keep ExxonMobil out of the action.
“I didn’t like Exxon’s response,” Trump told reporters. “They’re playing it too cute.”