The Trump administration is demanding that oil companies make large cash injections into Venezuela if they want compensation for their assets seized in the Latin American country, Politico reports.
“If oil companies want compensation for their drilling rigs, pipelines and other property confiscated by Venezuelan authorities, they must be willing to invest in rebuilding the industry“, the publication writes, citing American officials.
However, Politico reports that such statements raise concerns among oil industry representatives, who currently do not see an opportunity to carry out restoration work on Venezuelan fields due to uncertainty about the country's future leadership, as well as due to concerns for the safety of employees and equipment.
The previous day, Trump announced at a press conference that major US oil companies would invest in Venezuela to “rebuild the destroyed oil infrastructure and start making money for the country“. According to him, the Latin American republic's oil industry has been in decline for a long time, and production levels are extremely low compared to what they could be.
On January 3, the US military launched a series of air strikes on the Venezuelan capital and military facilities around Caracas. Later, President Donald Trump announced the capture of Venezuelan leader Nicolás Maduro.