U.S. companies are ready to pony up $100 billion to build up Venezuela’s oil infrastructure

U.S. oil companies are prepared to invest $100 billion to rebuild the oil infrastructure in Venezuela, President Trump announced Friday during a roundtable meeting with U.S. oil executives.

“The plan is for them to spend — meaning our giant oil companies — will be spending at least $100 billion of their money, not the government’s money,” Mr. Trump said.

“When they spend all this money, it’s going to be there, so they get the money back and a very nice return. The plan is for them to spend at least $100 million to rebuild the capacity and infrastructure necessary.”

Executives from Chevron, ConocoPhillips, Halliburton,  Marathon and ExxonMobil were among those attending the meeting, which focused on stabilizing Venezuela’s oil industry following the U.S. capture Saturday of President Nicolas Maduro.

Mr. Maduro is now jailed in New York on drug trafficking and weapons charges.

Mr. Trump said the oil companies don’t need federal funding, but “need government protection and government security” to be able to operate safely in Venezuela. Industry experts have cited political stability and security as one of the biggest concerns about going into the country.

He did not say what the U.S. would do specifically to provide security guarantees for the oil companies, but said American taxpayers would be paid back with “even lower energy prices.”

ExxonMobil CEO Darren Woods pushed back on Mr. Trump’s plan, saying that the current situation on the ground in Venezuela presents a dangerous risk to the company.

Mr. Woods expressed doubts about returning to the South American country. He called the country “univestible” in its current state, citing Venezuela’s unstable political system, crime and high taxes, which are as high as 60% on oil profits.

Still, he expressed confidence that the Trump administration would make the changes necessary to produce a financial return.

Mr. Woods said Exxon would start assessing Venezuela within the next couple of weeks.

ExxonMobil left Venezuela in 2007 when President Hugo Chavez nationalized the oil industry and the company refused to accept the terms.

ConocoPhillips CEO Ryan Lance noted that his company lost $12 billion from the nationalization of Venezuela’s oil industry.

Mr. Trump tried to assure the oil executives that they would be compensated for assets that were seized in 2007. Both ConocoPhillips and Exxon had their assets seized by the Venezuelan government.

Chevron, which attended Friday’s meeting, is the only U.S. oil company currently operating in Venezuela through a joint venture with the state oil company Petroleos de Venezuela.

Venezuela has the largest proven crude oil reserves in the world at roughly 303 billion barrels, which accounts for 17% of the global total, according to data from the U.S. Energy Information Administration.

But its oil sector is in disrepair and desperately needs private investment to turn it around. Production has declined from its peak of about 3.5 million barrels per day in the 1990s to around 800,000 barrels per day, according to data from energy consulting firm Kpler.

It is estimated that it will cost more than $180 billion through 2040 for Venezuela’s production to reach 3 million barrels per day again.

The president said the Venezuelan oil will be used in different ways, including to build U.S. roads. He called the Venezuelan oil, “a heavy oil, very good oil, great oil.”

Mr. Trump also said that he would be personally deciding on which oil companies will be allowed to enter Venezuela, possibly as soon as today.

“We’re going to cut a deal with the companies — we’ll probably be doing that today or very shortly thereafter,” he said.

Mr. Trump added that oil companies will be dealing with the U.S. to negotiate access to the Venezuelan oil rather than with Venezuela’s leadership.

Mr. Trump added that oil companies will be dealing with the U.S. to negotiate access to Venezuelan oil rather than with Venezuela’s government.

That oil refined by U.S. companies could be sold to China and Russia.

“We are open for business,” Mr. Trump said. “China can buy all the oil they want from us, there or in the United States. Russia can get the oil they need from us.”

Venezuela has agreed to “immediately” begin refining and selling up to 50 million barrels of crude oil, which Mr. Trump said would continue “indefinitely.” As many as 30 million barrels are already on their way.

The president said the oil windfall is on the way “right now.”

“It’s about $4 billion worth of oil and it’s on our way to the United States right now, and we want to thank Venezuela for that,” he said.

Mr. Trump said the U.S. is working “very well” with Venezuela’s interim leader, Delcy Rodriguez. Formerly Venezuela’s vice president under Mr. Maduro, she was sworn in as Venezuela’s interim president on Saturday.