The oil deal announced by US President Donald Trump with Venezuela, which he described as “the largest in the history of the world,” faces serious legal and logistical obstacles that may hinder its implementation, according to an investigation published by the British newspaper “The Guardian.”
The deal provides for granting the United States broad rights linked to a private oil company, and access to huge Venezuelan oil resources, at a time when the Trump administration spoke of American control over more than 65 billion barrels of proven reserves.
On the other hand, experts pointed to obstacles related to Venezuelan law, which prohibits oil deals that extend for 100 years, stressing that the legal maximum period is 25 years. Questions were also raised about the legal powers that allow an entity affiliated with the US Department of Defense to own a stake in an oil company.
There are also fundamental challenges related to the agreement’s ability to attract the investments necessary to raise the level of Venezuelan oil production, amid a state of hesitation prevailing among companies and investors as a result of the nature of the agreement, its terms, and the ambiguity surrounding it.
In addition, the report questioned the possibility of using Venezuelan oil to refill the US strategic oil reserve in the near term, given the lack of infrastructure and the urgent need for complex arrangements that include transportation and processing operations before large quantities of it reach American territory.
In light of these complications, experts who spoke to the newspaper expressed their doubts about the deal’s ability to withstand and continue in its current form, despite the US administration’s assertion that the agreement will enhance American influence and presence in the Venezuelan energy sector.
