Venezuela reportedly weighs exit from OPEC amid U.S. oil talks

Venezuela is reportedly planning to leave the Organization of the Petroleum Exporting Countries (OPEC), in a significant blow to the oil cartel it founded in 1960 alongside Iran, Iraq, Kuwait and Saudi Arabia.

Caracas has been discussing the move with U.S. officials, but no final decision has been reached yet, Meanwhile, another report by Axios on Thursday stated that the Trump administration is in talks with Venezuela’s interim government about acquiring a stake in the country’s massive oil resources.

While the details have not been finalized, the discussions are happening over a dozen productive oil fields and do not involve all of Venezuela’s 300 billion barrels of proven reserves.

The dozen oil fields contain close to 90 million barrels of proven reserves, which were controlled by past Venezuelan leaders, many of whom have been indicted.

Some of these oil fields had their interests controlled by China.

In exchange for U.S. ownership, Caracas would benefit from private firms, including U.S. oil majors, developing the fields, bringing in increased oil revenue to the South American country.

The White House did not immediately respond to ’s request for comments.

Read Also: Venezuela's Gold Held in the UK Could Soon Land in US Treasury Accounts: Report Washington Vows Firm Grip on Venezuelan Oil Back in January, after the U.S. captured Nicolas Maduro, Energy Secretary Chris Wright had declared Washington’s intention to maintain a firm grip on Venezuela’s oil industry.

Wright stated that the U.S. would continue to oversee the sale of Venezuela’s oil production "indefinitely." "We will sell the production that comes out of Venezuela into the marketplace," stated Wright.

The Energy Secretary emphasized that the generated revenue would be reinvested in Venezuela for the benefit of its people.

He elaborated that the U.S. would supply diluent to restart production, allow imports of parts and services to stabilize Venezuela’s oil industry, and ultimately foster conditions for output growth and renewed investment by major American companies.

In April, Chevron Corp (NYSE: CVX ) agreed to an asset swap with Petroleos de Venezuela (PDVSA) to strengthen its huge oil position in Venezuela.

Under the deal, Chevron will boost its stake in Petroindependencia to 49% and gain rights to develop the Ayacucho 8 area near the Petropiar project in the Orinoco Oil Belt.

Meanwhile, the United Arab Emirates (UAE), the third-largest oil producer in OPEC, exited the cartel in May, citing the country’s current production policy and its current and future capacity aligned with its national interests.

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