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US Pressures Oil Giants to Invest in Venezuela for Debt Recovery

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  Published in Stocks and Investing on Tuesday, January 6th 2026 at 5:47 GMT by reuters.com

US Demands Oil Majors Invest in Venezuela to Recover Billions in Debt: A Risky Gambit

The United States is reportedly pressuring major oil companies – including ExxonMobil, Chevron, and Shell – to make substantial investments in Venezuela's struggling energy sector as a condition for potentially recovering billions of dollars in outstanding debts. This strategy, revealed by Reuters based on interviews with U.S. officials, represents a significant shift in Washington’s approach to both Venezuelan politics and its relationship with these multinational corporations, carrying considerable risks and potential rewards.

For years, US sanctions have crippled Venezuela's oil industry, once the largest in Latin America. These sanctions were initially imposed under President Trump and maintained by the Biden administration, targeting the Nicolás Maduro regime due to allegations of corruption, human rights abuses, and undermining democratic processes. The goal was to pressure Maduro into allowing free and fair elections and respecting democratic institutions. However, the crippling effect on Venezuela’s economy has exacerbated humanitarian suffering and instability.

Now, with a potential transition of power anticipated in upcoming presidential elections (scheduled for late 2024), the US is exploring a new avenue: incentivizing investment by oil majors to revive production while simultaneously securing repayment of debts owed to those same companies. The logic is that significant capital injections are needed to repair Venezuela’s dilapidated infrastructure and increase oil output, which would generate revenue for debt servicing.

The Debt Burden & US Leverage

The total amount owed to these oil companies is estimated to be around $20 billion. These debts stem from pre-sanction investments and contractual agreements that have been largely frozen due to the restrictions imposed by Washington. The U.S. government, recognizing the precarious financial situation of Venezuela and the desire of these corporations to recoup their losses, believes it holds significant leverage.

According to Reuters’ sources, the US is essentially telling oil majors: "Invest in Venezuela's oil sector, help increase production, and we will facilitate a process for you to recover your debts." This isn't a direct guarantee of repayment – that would be difficult given Venezuela’s economic state – but rather an indication that the U.S. government would work to create conditions favorable to debt recovery if companies are willing to participate in revitalizing the industry.

The Complexities and Risks Involved

This strategy is far from straightforward and presents several significant challenges. Firstly, it requires a delicate balancing act. The US wants to encourage investment without appearing to endorse or legitimize the Maduro regime, which remains under sanctions. Any perceived softening of the stance could be politically damaging domestically and internationally.

Secondly, Venezuela’s political landscape is highly unstable. While opposition leader María Corina Machado has emerged as a strong contender in the upcoming elections (though her eligibility remains uncertain due to past sanctions), the outcome is far from guaranteed. A return to authoritarian rule or further instability would jeopardize any investments and potentially expose companies to significant losses. Machado's potential victory, while welcomed by some, also raises concerns about her ability to navigate the complex political landscape and maintain a stable relationship with the US.

Thirdly, the oil majors themselves are hesitant. Investing in Venezuela carries substantial reputational and operational risks. The country has a history of nationalization and contract breaches. Furthermore, investing in a regime accused of human rights abuses raises ethical concerns for companies committed to environmental, social, and governance (ESG) principles. Shell, for example, has previously written down billions due to its Venezuelan investments.

Chevron’s Lead & Other Responses

Chevron is currently the only major oil company with significant ongoing operations in Venezuela, having received a specific license from the US government allowing it to continue production. This existing presence gives Chevron a strategic advantage and makes them a key player in any potential investment surge. The US is hoping that Chevron's success will encourage others to follow suit.

Other companies are reportedly assessing the situation cautiously. ExxonMobil, which has substantial claims against Venezuela, is likely considering its options but remains wary of the political risks. Shell’s position is particularly complex given its past experiences and ongoing legal battles with Caracas.

Implications for US-Venezuela Relations & Global Oil Markets

This new U.S. strategy could have significant implications beyond the immediate financial interests of oil companies. A successful revival of Venezuela's oil industry would increase global oil supply, potentially easing price pressures and impacting OPEC+ dynamics. It could also provide a crucial lifeline to the Venezuelan people, alleviating some of the suffering caused by years of economic hardship.

However, it also carries the risk of backfiring. If investment fails to materialize or is followed by renewed political instability, it could further damage US credibility and reinforce Maduro’s position. The success hinges on a delicate combination of political maneuvering, economic incentives, and a degree of trust – all in a region historically marked by volatility and conflict.

Ultimately, the U.S. gamble involves leveraging its influence to coax oil majors into a risky venture that could potentially unlock billions in debt recovery while simultaneously influencing Venezuela’s future trajectory. The outcome remains highly uncertain, but the stakes are undeniably high for all parties involved.

I hope this article provides a thorough summary of the Reuters report and offers valuable context. Let me know if you'd like any adjustments or further elaboration on specific aspects!