President Donald Trump's plan to take direct control of Venezuela's oil reserves is provoking alerts that the Latin American nation could become a modern natural resource colony, similar to the so-called "banana republics" of a century ago, something that could create long-term risks for oil companies operating in the country.
Trump stated on Friday night that he had reached an agreement with Venezuela's interim president, Delcy Rodríguez, through which the United States will control more than 65 billion barrels of oil "through a partnership with private companies."
The new company will have a 100-year concession over 17 oil fields, becoming the second largest corporate holder of proven reserves in the world, behind only Saudi Aramco, according to an American official. Still, Maduro's refusal to leave power could put the agreement at risk.
