API chief: US oil industry needs to reform its Venezuela policy on security in order to enter the country.

American Petroleum Institute President Mike Sommers said that the U.S. Oil Industry must have in place a number of prerequisites in Venezuela, including a workforce security policy and contract sanctity. He made this statement during a phone conference with journalists on Monday.

He said that the U.S. Oil Industry had welcomed the move to remove Nicolas Maduro earlier this month, and added that the energy assets in the country are large enough to attract significant investment.

Sommers said that "most of the reforms will have to be done in Venezuela by Venezuelans. But we are confident Secretary Rubio and Secretary Burgum?will play an important role in making that territory a region where American companies and American investors are welcome to invest and rebuild the country to a position of being a superpower in energy again."

Sommers stated that API believes the administration of President Donald Trump is aware of how important these concerns are.

He added that debts from previous asset expropriations would be "a significant hurdle" for many companies to invest in this resource. Reporting by Valerie Volcovici, Sheila Dang and Nathan Crooks; Editing by Chris Reese and Diane Craft

(source: Reuters)