U.S. Energy Secretary Chris Wright stated on Wednesday that Venezuela's debt to ConocoPhillips and ExxonMobil is not a priority for the Trump administration following the ousting of President Nicolas Maduro.
Wright remarked, "The massive debt Venezuela owes to ConocoPhillips and Exxon is real and will need to be repaid in the future. However, this is a long-term issue, not a short-term one."
ConocoPhillips and Exxon initiated arbitration proceedings against Venezuela after former President Hugo Chavez nationalized the oil industry in 2007. According to a report released by JPMorgan on Monday, Venezuela owes ConocoPhillips approximately $10 billion and Exxon around $2 billion.
Secretary Wright emphasized that the Trump administration's immediate priority is stabilizing Venezuela.
"The revenue from oil sales must be used to stabilize Venezuela's economy, halt the collapse of the bolivar, and prevent the nation from becoming a failed state," the Energy Secretary said.
ConocoPhillips and Exxon exited Venezuela following Chavez's nationalization. In contrast, Chevron remained and, through a special license granted by the Trump administration, became the only major U.S. oil company operating in the country.
Wright noted that major U.S. oil companies will require time to invest billions of dollars to rebuild Venezuela's energy infrastructure.
"If you are Exxon or ConocoPhillips and have already left the country, you need a normal business environment, the rule of law, and a certain level of security to return. This will take some time," he explained.
He indicated that the Trump administration would collaborate with Chevron on "incremental adjustments or changes" to permit an increase in its production.
Earlier, at the Morgan Stanley Annual Energy Conference in Miami, Wright suggested that Venezuela's production could increase by several hundred thousand barrels per day in the short term.
The Energy Secretary affirmed that the United States would control Venezuela's oil sales indefinitely.
"We will sell Venezuela's crude—first, this backlog of stored oil, and then indefinitely, we will bring Venezuela's production to market," Wright stated at the Morgan Stanley conference.
He added, "We need to possess this leverage and control over oil sales to drive the changes that must occur in Venezuela."
Sources revealed that President Trump is scheduled to meet with oil company executives at the White House on Friday. CEOs from ExxonMobil and ConocoPhillips, along with representatives from Chevron, are expected to attend the meeting.
