The Trump administration’s first sale of Venezuelan oil is valued at $500 million, an administration official told Semafor.
The sale marks an initial milestone in the administration’s stewardship of Venezuela after the US ouster of its former leader, Nicolás Maduro, 11 days ago. President Donald Trump has indicated that the US would effectively run Venezuela for an indeterminable amount of time and take control of up to 50 million barrels of its oil — marketing and selling it while distributing the proceeds back to Venezuela in an arrangement with little precedent.
Trump signed an executive order on Friday that provided some details on how the US plans to block courts or creditors from tapping any revenue from those oil sales. Venezuela owes international bondholders, oil companies and others as much as $170 billion — one reason why US firms have been reluctant to help rebuild the country’s infrastructure.
Trump told ConocoPhillips CEO Ryan Lance last week that the US is “not going to look at what people lost in the past, because that was their fault.”
The administration official told Semafor that the interim leadership in Venezuela, led by former Maduro No. 2 Delcy Rodríguez, has “fully cooperated” since the US-Venezuelan energy deal was announced last week, adding that the US has “leverage” through sanctions and oil sales.
Revenue from the oil sales is currently being held in bank accounts controlled by the US government, as indicated in Friday’s order, according to the administration official. The main account, according to a second senior administration official, is located in Qatar.
The second official described Qatar as a neutral location where money can flow freely with US approval and without risk of seizure. Trump’s order noted that at least some of the revenue would be held in US Treasury accounts.
Hellbound and Down 