Oil Companies in ‘Active’ Talks Over Recouping Venezuela Losses

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(Bloomberg) — ConocoPhillips and other energy companies that lost billions of dollars after Venezuela nationalized its oil industry decades ago are in talks with acting Venezuela President Delcy Rodríguez over recouping some ground, according to US Energy Secretary Chris Wright. 

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“They are in active discussions with ConocoPhillips — the people that lost assets in the before, are all in active dialogs right now,” Wright said Thursday in an interview on Bloomberg Television. “What’s the right way forward? How to get to recompense for that money they’re owed and hopefully entice them to come back into the country and grow production?”

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Wright, the most senior US official to visit to Venezuela since the capture of former President Nicolás Maduro, spoke during a tour of Venezuela’s Orinoco oil belt, following a meeting with Rodríguez where he said the two discussed the issue.

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“She has regret about the past and about the things that happened there,” Wright said, adding repayment could help entice reluctant US oil producers to help in President Donald Trump’s quest to revitalize Venezuela’s beleaguered oil sector. 

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Two decades ago, Exxon Mobil Corp. and ConocoPhillips had their assets nationalized by Maduro’s predecessor, Hugo Chávez, costing the companies billions. 

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ConocoPhillips Chief Executive Officer Ryan Lance has said his top priority in Venezuela is recouping billions his company is owed. Despite roughly $10 billion in favorable judgments from international arbitrators holding Venezuela liable for the seizures, the Houston oil giant’s efforts to recover all it’s owed have been frustrated. So far the company has only been able to recovery about $1 billion.

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ConocoPhillips declined to comment on Wright’s comments from Thursday. 

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Wright added the administration plans to issue licenses soon that will allow the import of parts and services into the country.

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Trump separately praised Rodríguez in a social media post Thursday, saying the administration was “dealing very well” with the official.

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“Relations between Venezuela and the United States have been, to put it mildly, extraordinary!” Trump said on Truth Social. “Oil is starting to flow, and large amounts of money, unseen for many years, will soon be greatly helping the people of Venezuela.”

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Speaking later Thursday, Rodríguez said she was “very pleased” that the path with the US “is one of respect and cooperation within the framework of national sovereignty.” She said she expected that the energy agenda can move forward within the framework of international and Venezuela laws.

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The Trump administration’s push for companies with US ties to play a leading role in rebuilding Venezuela’s oil sector will erode the influence of China, Russia and Iran in the South American nation, Wright added during the interview.

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“We want it to be open to less corrupt, honest American, Western American allies for business,” Wright said. “The influence of China and Russia and Iran that has been very large in Venezuela, will become very small.”

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Also See: Venezuela to Grant More Oil Drilling Blocks to Chevron, Repsol

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Wright and Rodríguez have had hours of discussions during his two-day trip, including briefly discussing Maduro, the US official said. Rodríguez is “quite enthusiastic” about Washington’s involvement in Venezuela, Wright said.

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—With assistance from Andreina Itriago and David Wethe.

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(Updates with additional context and details starting from the first paragraph.)

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