Venezuela’s state-run oil company says talks with U.S. progressing

PDVSA, Venezuela’s state-run oil company, said on Wednesday it is progressing in negotiations with the United States for oil sales, as a board member for the company told Reuters the U.S. will need to buy cargoes at international prices.

On Tuesday, Washington announced a deal with Caracas to get access to up to US$2 billion worth of Venezuelan crude, a sign that Venezuelan government officials are responding to U.S. President Donald Trump’s demand that they open up to U.S. oil companies or risk more military intervention.

Trump has said he wants interim Venezuelan President Delcy Rodriguez, installed this week after the U.S. deposed President Nicolas Maduro, to give the U.S. and private companies “total access” to her country’s oil industry.

PDVSA said in a brief statement that the parties have been talking about similar terms as those in place with foreign partners such as Chevron CVX.N, the company’s main joint venture partner, which currently controls all oil exports to the U.S.

“The process … is based on strictly commercial transactions under terms that are legal, transparent and beneficial for both parties,” the company said.

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PDVSA board member Wills Rangel, who is also a union leader, told Reuters the U.S. will need to buy cargoes at international prices if the country wants Venezuelan oil.

“If they want to buy it, they will have it in due time, sold at the international price,” Rangel said. “Not the way (Trump) intends, as if that oil belongs to them because we supposedly owe them. We do not owe anything to the United States.”

Chevron, which has a special U.S. license to export Venezuelan crude despite sanctions, is the only company currently exporting crude from the South American country, Rangel added, as a U.S. blockade on Venezuela keeps exports bound to China, the main destination of its oil, paralyzed.