The Washington Post reports:

The Trump administration is negotiating a long-term stake in a vast share of Venezuela’s oil fields, according to three people close to the discussions, a costly and legally precarious proposal that aims to nudge reluctant energy companies to drill in the risky region.

The contours of the plan, which is still evolving and could change or fall apart, would involve the United States taking more direct control over Venezuelan reserves as crime and steep logistical challenges discourage private investors.

Under terms being discussed, the U.S. would acquire long-term contracts for a third of Venezuelan oil reserves, creating access to roughly 90 billion barrels of crude, according to two people familiar with the negotiations who spoke on the condition of anonymity because they were not authorized to share details.

A list shared with The Washington Post noted 17 oil fields in which the U.S. would take a stake. Several of the fields lack any infrastructure or access to transport hubs to treat and move the crude. Those where such infrastructure does exist have fallen victim to years of neglect and theft or machinery.

Pumping oil from the fields would require investments of many billions of dollars and costly security plans to protect oil workers and production facilities in lawless and violent regions.

The negotiations were first reported by Axios.

People close to the talks said Secretary of State Marco Rubio and Energy Secretary Chris Wright are hoping to make a visit to Venezuela to announce a deal next week. But some in the industry are skeptical that anything substantial would come together by then.

There are numerous hurdles, including strong opposition in Venezuela to ceding control of natural resources to the United States. Revisions to the Venezuelan constitution may be required before any such deal is finalized, and the prospects of that happening are uncertain amid U.S. antipathy. [Continue reading…]