Billionaire shale pioneer Harold Hamm's Continental Resources Inc. is expected to announce a deal to invest in Venezuela. This move is part of the Trump administration's broader initiative to encourage US companies to help revive Venezuela's oil sector. The announcement is anticipated to take place at the G20 energy ministers summit in Houston.
The investment by Continental Resources follows a period where foreign oil producers are reorganizing joint ventures and production sharing contracts in Venezuela due to sweeping energy reforms. Concurrently, new entrants, predominantly US-based firms, are committing to development projects in the OPEC nation. This surge in interest is largely driven by a Washington-supported $100 billion reconstruction plan aimed at revitalizing Venezuela's oil industry.
This development comes after the US forces removed former President Nicolas Maduro from power in January, prompting discussions between companies like Continental and the Trump administration regarding potential investments. Earlier, President Trump had outlined a plan for US companies to invest at least $100 billion in Venezuela's oil sector, even taking partial control of a significant portion of the country's reserves. While major oil companies like Exxon Mobil and ConocoPhillips had expressed reservations about committing substantial capital due to past asset seizures and the need for legal changes, Harold Hamm, a close ally of Trump, had previously shown interest as an "explorationist" despite acknowledging Venezuela's challenges.
The US Energy Secretary Chris Wright confirmed that a US oil and gas producer would unveil a major investment in Venezuela. The Trump administration's strategy aims to boost investment in Venezuela and potentially curb US gasoline prices. The deal also involves the US taking majority control of over 65 billion barrels of Venezuela's proven oil reserves, as announced by President Trump in late August.
