Venezuela Oil Deal Expands As Maduro Claims Immunity
Venezuela · TRANSITION
Key Facts
- —What happened The US-Venezuela oil deal is expanding as Maduro’s lawyers ask a judge to drop his case.
- —How big The US has collected more than US$13 billion from Venezuelan oil sales since January, Trump says.
- —What it means Trump says that oil money already covers the cost of capturing Maduro many times over.
- —The catch Maduro’s own lawyers separately argue that he cannot be tried at all, citing head-of-state immunity.
- —Who it affects Washington says China will get no claim on revenue from newly developed Venezuelan oil fields.
- —What comes next A US judge will hear Maduro’s immunity arguments on November 17, with trial set for June 2027.
Washington is widening its Venezuela oil arrangement even as Maduro’s lawyers ask a US court to drop his case.
President Trump says Venezuela’s oil has already paid for the operation that captured Nicolás Maduro. His administration now wants to widen that oil arrangement even further.
Maduro’s own lawyers are telling a different story to a US court. They say head-of-state immunity means he cannot be tried at all.
Trump Says The Oil Already Covers The Bill
The US has collected more than US$13 billion from Venezuelan oil sales. That is according to Trump’s own account of sales since Maduro’s capture.
“We paid for the war with what we’ve taken out many, many, many times,” Trump said. He describes it as the spoils that belong to the victor.
One published estimate puts the operation’s cost at about US$4.7 billion. That is well below the US$13 billion in oil revenue Trump has cited.
The wider deal covers 65 billion barrels of Venezuelan oil reserves. A US-led venture won 100-year rights to develop 17 oil fields there this week.
Chevron plans to invest US$7 billion in Venezuela over five years. Officials call 1.5 million barrels a day the new deal’s initial target.
A Swap To Refill America’s Emergency Reserve
Energy Secretary Chris Wright wants to trade Venezuelan crude for American crude. He floated the idea to refill the US Strategic Petroleum Reserve, the country’s emergency oil stockpile.
“We’ll swap you a barrel of heavy crude for a barrel of light or medium United States crude,” Wright said. Venezuelan crude is too heavy and high in sulfur for direct storage there.
Refiners typically borrow reserve oil and return it later, plus a premium. This deal would apply that same swap model to Venezuelan crude.
Analysts say Venezuelan grades carry too much sulfur for the reserve’s storage caverns. Building extra capacity for heavier oil takes years, they note.
Wall Street is not convinced the swap will move fuel prices much. UBS says oil prices react mainly to Middle East shipping risks, not to this deal.
Energy consultancy Rystad Energy says Venezuela will not reach old production levels until 2050. It estimates the country needs about US$85 billion in new investment.
Washington Says China Gets Nothing New
The deal also touches Venezuela’s ties with China. Wright says China will have no claim on revenue from newly developed oil fields.
China has an older loan-for-oil arrangement with Venezuela worth more than US$10 billion. Wright’s statement removes what critics called a Chinese claim on new production.
China had reportedly bought some Venezuelan oil through US channels earlier this year. Beijing has pushed Venezuela to protect its existing investments in the country.
Elections Enter The Conversation
Interim President Delcy Rodríguez discussed election plans during Wright’s energy talks. She became Venezuela’s interim leader after Maduro’s capture in January.
She has not set a date for new elections. Trump said this week that Venezuela is not “ready yet.”
Secretary of State Marco Rubio said the government and opposition will meet again soon. Those talks will focus on renewing the National Electoral Council, the body that runs Venezuelan votes.
Many Venezuelans have criticized the energy deal for skipping a firm election date. Government critics call the oil-first approach a way to delay political change.
Maduro’s Lawyers Say He Cannot Be Tried
Maduro’s attorney filed a motion in a Manhattan federal court this week. Barry Pollack argues head-of-state immunity protects Maduro from the drug-trafficking charges.
Pollack says heads of state have held this protection for centuries. He wants the case dismissed before it reaches trial.
Legal experts compare the case to the 1990s prosecution of Panama’s Manuel Noriega. Noriega made a similar immunity argument at the time.
That defense did not succeed in the end. Noriega was convicted on drug-trafficking charges.
The immunity claim comes as Trump publicly celebrates Maduro’s capture. He has repeatedly called the oil revenue proof the operation was worth it.
Prosecutors must respond to the immunity motion by early October. A judge will hear arguments on November 17, with trial currently set for June 2027.
Venezuela Reopens One Flight At A Time
Small signs of normal life are returning too. Caracas’s main airport just reopened after a deadly earthquake shut it for months.
A June earthquake near Caracas had damaged the terminal. Airlines are now rebuilding their schedules step by step, not all at once.
American Airlines resumed twice-daily Miami-Caracas flights on September 3. LATAM plans to restart its Bogotá-Caracas route on September 4.
Colombian airline Wingo says it will resume daily flights from Bogotá on September 7. It also plans three flights a week from Medellín.
Other airlines are adding Caracas routes too, including American and LATAM. It adds to small signs the country is reopening after a turbulent year.
More: Venezuela news in English, every day from The Rio Times.
Frequently Asked Questions
Why does Trump say Venezuela’s oil already paid for Maduro’s capture?
Trump says oil sales since Maduro’s January capture have topped US$13 billion. He calls that more than the operation’s real cost.
Is Maduro’s immunity claim likely to succeed?
That is not yet clear. Prosecutors must respond to the motion by early October, then a judge will hear arguments on November 17.
What is the US-Venezuela oil swap Chris Wright proposed?
Energy Secretary Chris Wright wants to trade Venezuelan heavy crude for lighter US crude. The swap would help refill the country’s emergency oil reserve.
Will this deal lower US gas prices soon?
Banks like UBS say probably not by much. They say other forces matter more, such as Middle East shipping risks.
Will China lose money it is owed by Venezuela?
Washington says China will not get new collection rights over freshly developed oil fields. Older loan repayments are a separate matter, officials say.
Sources: CNBC, Al Jazeera, Bloomberg, MercoPress, TimesLive, Aviacionline, Voz Media, Moneywise, and The Rio Times Online.
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