Western oil companies say Venezuela owes them tens of billions of dollars for earlier investments, claims that are resurfacing as the Trump administration pushes for expanded U.S. energy involvement in the country.
Exxon Mobil and ConocoPhillips hold the largest outstanding claims, stemming from disputes that began under former Venezuelan President Hugo Chavez, when foreign oil companies were forced to accept smaller stakes in projects or leave the country without compensation.
Most Western firms chose to leave.
American and European oil companies once played a major role in Venezuela's energy sector, which holds the world's largest proven oil reserves.
Since their departure, oil production has fallen sharply due to years of mismanagement, underinvestment and infrastructure decay.
The New York Times reported that company executives and industry experts say unresolved compensation claims remain a major obstacle to renewed investment.
Until those disputes are settled, firms are expected to remain cautious despite President Donald Trump's goal of increasing U.S. oil production in Venezuela.
Trump said Saturday he would protect the interests of U.S. oil companies. "We built Venezuela's oil industry with American talent, drive and skill, and the socialist regime stole it from us during those previous administrations, and they stole it through force," he said. "We will never allow foreign powers to rob our people."
ConocoPhillips has said Venezuela owes it about $12 billion. Exxon Mobil has estimated its claims at roughly $20 billion. Both companies have pursued international arbitration and U.S. court cases for years, with mixed results.
Chevron is the only major U.S. oil company that remained in Venezuela, a decision that could position it to benefit if new investment opportunities emerge.
Other companies have largely written off their claims as unlikely to be repaid, though they have not abandoned them.
"It's a stigmatizing action against a country," said Shon Hiatt of the University of Southern California, referring to asset seizures and arbitration battles. "It's basically telling everybody that they're never going back into the country."
European firms, including Eni, TotalEnergies and Repsol, also invested heavily in Venezuela, though on a smaller scale.
ConocoPhillips may recover some losses through the U.S. Bankruptcy Court auction of CITGO, a U.S.-based subsidiary of Venezuela's state oil company. Arbitration panels have repeatedly ruled in Conoco's favor, but collecting payments has proven difficult.
Exxon Mobil has recovered some compensation tied to specific projects, but most of its claims remain unpaid. Venezuela disputes many of the claims, saying it owes far less or nothing.
U.S. administration leaders have said Washington plans to control Venezuelan oil sales for now, with proceeds first used to stabilize the country's economy before addressing company claims.
Investors remain cautious. Shares of Exxon Mobil, ConocoPhillips and Chevron all declined this week as uncertainty over Venezuela's future continues.
The Trump administration is now managing Venezuelan affairs with the assistance of national leaders not involved in narcoterrorism, the issue that led to the capture of former Venezuelan leader Nicolas Maduro, who now faces federal indictments and is being detained in the U.S.
Jim Mishler ✉
Jim Mishler, a seasoned reporter, anchor and news director, has decades of experience covering crime, politics and environmental issues.
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