Venezuelan Executive Seeks Investors After U.S. Oil Agreement

CARACAS, VENEZUELA — Alex Saab, a Venezuelan executive, has begun approaching international investors to discuss potential business opportunities within Venezuela. His efforts follow his release from U.S. custody in December 2023.

Saab's release came as part of a deal brokered by the administration of former President Donald Trump. This agreement involved the release of ten American citizens from Venezuela and the easing of some U.S. sanctions on Venezuela's oil and gas sectors.

Venezuelan President Nicolás Maduro appointed Saab in 2020 as a special envoy to negotiate for fuel and humanitarian aid. U.S. authorities, however, indicted Saab in 2019 on charges of money laundering related to alleged bribery schemes involving government contracts.

Following his release, Saab returned to Venezuela and now holds a position as head of the International Centre of Productive Investments. He stated his intention to attract international capital to Venezuela, focusing on sectors including oil, gas, gold, and other minerals.

Analysts have indicated that Venezuela possesses substantial untapped natural resources. The country holds the world's largest proven oil reserves. The recent easing of sanctions permits some transactions with Venezuela's state-owned oil company, Petróleos de Venezuela S.A. (PDVSA).

Details of the deal leading to Saab's release included a temporary six-month general license authorizing transactions related to oil and gas operations. The U.S. Treasury Department issued this license, allowing PDVSA to produce and export crude oil and gas to its chosen markets. This license was set to expire in April 2024 if Venezuela did not meet specific electoral conditions.

The Venezuelan government stated that the agreement aims for a daily production increase of 1.5 million barrels of oil. They projected this could generate up to $200 billion in revenue for the country. The U.S. Energy Information Administration (EIA) reported in 2023 that Venezuela's total crude oil production averaged approximately 760,000 barrels per day. The EIA also noted that U.S. imports of Venezuelan crude oil ceased in 2019 due to sanctions.

This agreement represents a notable shift in U.S. policy toward Venezuela. The U.S. had previously imposed comprehensive sanctions on Venezuela's oil sector in 2019.