Venezuela signs oil, gas deals with US companies

Venezuela signed deals with US companies on Thursday in a bid to boost oil and gas production, the latest sign of thawing relations after Washington deposed leftist leader Nicolas Maduro.

The South American nation is currently led by interim president Delcy Rodriguez, who is cooperating under heavy US pressure to meet President Donald Trump’s demands for access to the country’s vast oil supplies.

Rodriguez, who was Maduro’s vice president before US forces captured him in a stunning raid in January, is now grappling with leading a country saddled with the world’s largest proven oil reserves but an economy in shambles.

The possibility of increased Venezuelan oil output comes as global markets face disruptions to Middle East oil supplies from the conflict in Iran which have driven up oil prices.

Under the agreements, US-based firms Hunt Overseas Oil Company and Crossover Energy will operate in the Orinoco Belt, where Venezuela’s oil reserves are primarily concentrated.

Rodriguez said the deals marked “where the interests of the United States and Venezuela come together.”

“Please convey to President Trump, who is a man of action… that we have pledged our word to build solid foundations for long-term relations between the United States and Venezuela,” she said.

Venezuela has signed agreements with various multinational oil companies, including Chevron, Eni, and Repsol, after reforms to liberalize the energy sector.

US envoy Jarrod Agen, who arrived in Caracas on Thursday as the two countries resumed direct air travel after seven years, attended the signing.

American Airlines subsidiary Envoy Air and Venezuela’s Laser Airlines will operate flights between Caracas and Miami starting this week.