• Trump seeks $100 billion in private investment to rebuild Venezuelan oil infrastructure
  • ExxonMobil CEO warns country lacks legal protections after two asset seizures
  • ConocoPhillips holds $8.7 billion in unpaid arbitration claims from 2007 nationalization

WASHINGTON, DC (TDR) — President Donald Trump encountered resistance from major oil executives Friday when he pitched a plan requiring at least $100 billion in private spending to revitalize Venezuela’s collapsed energy sector. The White House meeting produced no firm commitments as industry leaders cited legal obstacles and security concerns following last week’s capture of Nicolás Maduro.

ExxonMobil CEO Darren Woods delivered the bluntest assessment during the East Room gathering, telling Trump that Venezuela remains fundamentally unsuitable for investment under current conditions. His company has suffered through two separate waves of asset confiscations by Venezuelan governments over the past five decades.

 

Major Firms Demand Legal Reforms First

The president promised oil companies “total safety” and “total security” for operations in Venezuela, emphasizing that firms would deal directly with Washington rather than authorities in Caracas. However, executives from Chevron, ConocoPhillips and more than a dozen other energy corporations expressed skepticism about returning without substantial political and commercial framework changes.

“If we look at the legal and commercial constructs and frameworks in place today in Venezuela today, it’s uninvestible.”

Woods emphasized that Venezuela would require major reforms to hydrocarbon laws and establishment of durable investment protections before his company could consider reentry. ExxonMobil exited the South American nation in 2007 after then-President Hugo Chávez demanded foreign firms surrender majority ownership stakes to state-run Petróleos de Venezuela.

Billions in Outstanding Claims Complicate Return

ConocoPhillips CEO Ryan Lance noted his company holds nearly $12 billion in outstanding arbitration claims against Venezuela from the 2007 nationalization. International tribunals ruled the seizures violated investment treaties, awarding ConocoPhillips $8.7 billion that remains unpaid nearly two decades later.

Trump responded that companies would eventually recover losses but stressed the administration wants to “start with an even plate” rather than focusing on past claims. Energy Secretary Chris Wright later told reporters that while the debts “need to be recompensed,” they represent a long-term rather than immediate priority.

The Venezuela oil infrastructure has deteriorated dramatically since peak production of 3.5 million barrels daily in the 1990s. Current output stands at approximately 800,000 barrels per day, according to energy consulting firm Kpler. Industry analysts estimate rebuilding capacity to 3 million barrels daily would require more than $180 billion through 2040.

Chevron Positioned to Expand Existing Operations

Chevron Vice Chairman Mark Nelson outlined the most concrete expansion pathway, describing plans to increase current production by 50 percent over the next 18 to 24 months. His company is the only major American oil firm currently operating in Venezuela with approximately 240,000 barrels daily output through joint ventures with PDVSA.

Nelson indicated Chevron could potentially double its lifting capacity “essentially effective immediately” with proper permissions from the Trump administration. Unlike its competitors, Chevron accepted reduced stakes during the 2007 nationalization and maintained operations despite taking an estimated $3 billion financial hit.

Treasury Secretary Scott Bessent suggested Thursday that smaller independent producers may prove more willing to enter Venezuela than major corporations constrained by board oversight. He told the Economic Club of Minnesota that “wildcatters” have been calling the administration expressing eagerness to begin operations.

Trump Cancels Second Military Wave

The president announced Saturday he cancelled planned follow-up strikes against Venezuela after acting President Delcy Rodríguez began releasing political prisoners. Trump credited the gesture as demonstrating cooperation between Washington and Caracas on rebuilding efforts.

“This is a very important and smart gesture. The U.S.A and Venezuela are working well together.”

The administration is simultaneously seizing Venezuelan oil tankers in the Caribbean, selling their cargo and holding proceeds in U.S.-controlled accounts. Wright described this strategy as providing leverage to drive necessary changes in Venezuelan governance and economic management.

A State Department team arrived in Caracas on Friday to assess conditions for potentially reopening the U.S. Embassy, which has remained closed since March 2019. However, officials emphasized that security guarantees for American personnel would be required before establishing even minimal diplomatic presence.

Independent Producers Express More Interest

Harold Hamm, a fracking executive and Trump ally, acknowledged Venezuela’s challenges while expressing confidence that industry expertise could handle them. Jeffery Hildebrand, CEO of independent producer Hilcorp Energy, declared his firm “fully committed and ready to go” on infrastructure reconstruction.

Trump emphasized that Venezuela possesses the world’s largest proven crude oil reserves at 303 billion barrels, representing approximately 17 percent of global supply. He claimed that combining American and Venezuelan reserves would give the partnership control over 55 percent of worldwide oil.

Can Trump convince skeptical oil majors to risk billions in a country that has twice confiscated their assets?

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