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US President Donald Trump on Tuesday announced that interim authorities in Venezuela will transfer between 30 and 50 million barrels of sanctioned oil to the United States.

In a post on Truth Social, Trump said the oil would be sold at market price, but he would control the proceeds to ensure the funds are used for the benefit of the people of Venezuela and the United States. He said he has directed US Energy Secretary Chris Wright to execute the plan immediately.

Trump said the oil would be transported through storage ships and brought directly to unloading docks in the United States. He described the oil as high quality and confirmed that the process would begin without delay.

This announcement comes days after Washington carried out what Trump described as a large-scale strike against Venezuela on Saturday. During the operation, Venezuelan leader Nicolas Maduro and his wife, Cilia Flores, were captured and taken out of the country.

According to Trump, the operation involved intelligence agencies and US law enforcement. Maduro and Flores were flown out of Caracas following their capture.

Hours after Maduro’s capture, Trump said US oil companies would invest billions of dollars to repair Venezuela’s damaged oil infrastructure. He said the investment would help restart oil production and generate revenue for the South American country. Speaking at a press conference in Florida, Trump said the United States would sell Venezuelan oil to other countries interested in buying it.

Trump said Venezuela had been unable to produce sufficient oil due to poor infrastructure. He added that US oil companies would sell oil in larger quantities, as production improves, to countries already using Venezuelan oil as well as new buyers. He described Venezuela’s oil business as a failure and said it would be rebuilt with fresh investment.

Legal Action Against Maduro and the Background of US Interest

Trump also stated that Maduro and Flores have been indicted in the Southern District of New York on charges related to alleged drug trafficking and narco-terrorism conspiracies. He said the two would face trial in the United States.

Venezuela holds the world’s largest oil reserves, estimated at around 303 billion barrels, accounting for nearly 20 per cent of global oil reserves. Oil is the backbone of Venezuela’s economy and a major factor behind continued US interest in the country. Venezuela’s reserves are higher than those of Saudi Arabia, Iran and Iraq.

Despite large reserves, Venezuela’s oil production remains low. The country currently produces around one million barrels per day, which represents about 0.8 per cent of global oil output. Before 2013, Venezuela produced nearly 3.5 million barrels per day. Production declined sharply due to weak infrastructure.

Venezuela’s oil infrastructure is estimated to be around 50 years old. Pipelines and refineries have not been upgraded for decades. Restoring production to earlier levels would require an estimated investment of about $58 billion. The state-owned oil company PDVSA lacks capital and modern technology, limiting production growth.

US interest is also linked to the nature of Venezuelan crude, which is classified as heavy crude. It is used to produce diesel, industrial fuel and asphalt. Several US refineries are designed to process this type of oil.

Venezuelan crude is also considered cheaper than other sources. Experts have said that restoring production could take five to ten years, as rebuilding infrastructure will be a lengthy and complex process.

Anubhav Maurya is a business journalist and Senior Sub Editor at Zee Business, where he covers the stock market, economy, industry trends, mutual funds, and personal financ