In the wake of a large-scale military operation that led to the capture of Venezuelan President Nicolas Maduro and his wife, the United States on Wednesday announced a major energy initiative, with the intent of stabilizing Caracas’s energy sector.
The plan, released on Wednesday, 7 January, involves rolling back ‘select’ sanctions to allow the South American nation’s crude oil to enter global markets under US oversight.
The Trump administration has called it a ‘historic deal’, which aims to safeguard American interests, restore Venezuela’s energy production, as well as generate a revenue stream for both countries.
According to a Fact Sheet released by the US Department of Energy, the administration highlighted that all proceeds from the sale of Venezuelan crude and oil products will initially be deposited in US-controlled accounts at globally recognized banks, ensuring transparency and certainty that the funds are used properly for the benefit of both American and Venezuelan citizens.
Details of the deal
The deal is expected to begin with the immediate sale of approximately 30 to 50 million barrels of crude oil, with further sales to continue indefinitely, the news report stated.
According to the fact sheet, the United States will also supply light crude oil, called thinner, to Venezuela so its very heavy crude can be mixed and upgraded for easier transportation and sale.
Additionally, The US will allow imports of select oilfield equipment, parts, and services to help fix decades of underinvestment and decline, modernize production facilities, and support short-term growth in Venezuela’s struggling oil sector.
“The only oil transported in and out of Venezuela will be through legitimate and authorized channels consistent with US law and national security. The United States is selectively rolling back sanctions to enable the transport and sale of Venezuelan crude and oil products to global markets,” the factsheet stated.
The fact sheet also claimed that the only oil transported in and out of Venezuela will be through legitimate and authorized channels, which are consistent with US law and national security.
Growing geopolitical tension between US and Venezuela
The energy deal comes after Venezuelan leader Maduro was captured by the US forces on 3 January, 2026. He was later flown out of the country, accompanied by his wife Cilia Flores. This joint operation involved intelligence agencies and US law enforcement.
They were indicted on charges of alleged “drug trafficking and narco-terrorism conspiracies” in the Southern District of New York and are currently facing trial. However, the 63-year-old pleaded not guilty in a New York federal court on Monday. Maduro’s wife Cilia Flores also pleaded not guilty.
The couple has been accused of four criminal charges, comprising narco-terrorism, conspiracy to import cocaine, and possession of machine guns and destructive devices, according to a mint report.
