House Democrats warn oil companies about risks associated with Venezuelan transactions

Twelve House Democrats sent a letter on Wednesday to '21 companies that attended the White House meeting held on Jan. 9, about developing Venezuelan oil resources. They warned them of legal and financial risks associated with any transactions or investments they made there.

The letter was written by Democratic Congressman Sean Casten. It stated that despite assurances given by the Trump administration, their failure to inform Congress about its legal basis for exercising control over Venezuela's assets places any investments made at risk of being questioned by Congress, a new U.S. President or Venezuelan Government.

KEY QUOTE

The lawmakers wrote: "We urge you to keep in mind the possibility that Congress, a later Administration or a Venezuelan government could attempt to invalidate such agreements, and your participation may expose your company to legal and enforcement risks."

Why it's important

Venezuela has the largest crude oil reserves in the world. The Trump administration says it will control Venezuela's?oil and revenue industry for the foreseeable future.

CONTEXT

Trump is trying to convince U.S. oil companies to invest billions in Venezuela to increase its production, by promising a share of sales revenues. Sources familiar with the plan said that U.S. officials were currently working on issuing a general licence to lift sanctions against Venezuela's energy industry. (Reporting and editing by Valerie Volcovici)

(source: Reuters)