For months, Venezuelan officials reportedly offered the Trump administration a significant share of their nation’s vast oil and mineral riches. Their goal was to de-escalate the ongoing conflict between the two countries, according to several individuals involved in the confidential discussions.
This extensive offer remained active even as the Trump administration intensified its rhetoric, labeling President Nicolás Maduro’s government a “narco-terror cartel.” Concurrently, the U.S. deployed warships to the Caribbean and started destroying vessels suspected by American authorities of transporting drugs from Venezuela.
The proposed deal, negotiated between a high-ranking U.S. official and Maduro’s closest advisors, included substantial concessions. Venezuela’s leader offered to grant American companies prime access to all current and upcoming oil and gold initiatives, prioritize contracts for U.S. businesses, reroute Venezuelan oil exports from China to the U.S., and significantly reduce energy and mining agreements with Chinese, Iranian, and Russian entities.
However, the Trump administration ultimately rejected Maduro’s economic proposals and ceased diplomatic engagement with Venezuela just last week. Sources familiar with the discussions confirmed that this decision effectively put an end to the potential agreement, at least for the foreseeable future.
Despite U.S. efforts to interdict what it identifies as drug trafficking vessels, the suspension of diplomatic talks, the military presence near Venezuela, and the escalating threats from Trump administration officials have convinced many observers in both nations that the administration’s true aim is the removal of Mr. Maduro from power.
Secretary of State and National Security Adviser Marco Rubio has consistently championed the administration’s hardline stance against Maduro. He has publicly denounced Maduro as an illegitimate leader and a “fugitive from American justice,” expressing clear skepticism about the diplomatic efforts led by special U.S. envoy Richard Grenell.
While admitting that Rubio’s unyielding strategy has dominated thus far, advocates for diplomacy remain optimistic. They cite past instances of Mr. Trump’s abrupt policy shifts on significant international matters, including conflicts like the war in Ukraine, trade policies with China, and negotiations regarding Iran’s nuclear program, as reasons to believe their approach might still succeed.
This report draws on insights from over a dozen American and Venezuelan sources, representing various groups who advocate for diplomatic engagement with Mr. Maduro. These individuals shared details of their discussions on the condition of anonymity, as they were not authorized to speak publicly.
In public, the Venezuelan government has met Trump’s military actions with strong defiance, reiterating its commitment to what it terms the socialist revolution initiated by Hugo Chávez in the 1990s. Simultaneously, Mr. Maduro has expressed continued willingness to negotiate, and his administration still accepts deportation flights from the United States.
Yet, away from the public eye, high-ranking Venezuelan officials, with Maduro’s explicit approval, have presented Washington with extensive concessions. These proposals would effectively dismantle the remnants of resource nationalism that formed the bedrock of Chávez’s political movement.
Although Grenell and Venezuelan representatives advanced in economic discussions, they reached an impasse regarding Maduro’s political destiny, as reported by individuals close to the talks. Venezuela’s Foreign Minister, Yván Gil, publicly stated last month that Maduro would not consider negotiating his departure from power.
Since taking office in 2013, Mr. Maduro has consistently stifled democratic opposition. Last year, he retained power following a presidential election widely seen as fraudulent, where he manipulated the outcomes and harshly suppressed ensuing protests.
Mr. Grenell chose not to comment for this report. Similarly, the State Department, the White House, and the Venezuelan government did not provide responses to requests for comment.
In Washington, American officials provided varied interpretations of the discussions. One U.S. official dismissed claims of negotiations concerning sanction relief and Venezuelan market access as “not an accurate assessment.”
Conversely, other U.S. officials confirmed that American and Venezuelan representatives engaged in multiple rounds of talks. These discussions focused on the potential for economic normalization, such as opening Venezuela’s energy markets to U.S. corporations and lifting existing American sanctions.
While Grenell and Maduro’s representatives pursued their negotiations, María Corina Machado, a prominent figure in Venezuela’s opposition, presented her own economic vision in Washington.
Machado asserted that a political transition led by her movement could unlock an even greater economic windfall for U.S. companies in Venezuela, potentially amounting to $1.7 trillion over 15 years. (Notably, Ms. Machado was honored with the Nobel Peace Prize for her relentless advocacy of democratic rights for Venezuelans.)
Sary Levy, Machado’s economic adviser, contended that any investment agreements proposed by Maduro would be unsustainable without genuine democracy, adherence to the rule of law, and respect for individual freedoms.
“Maduro’s offer to investors isn’t true stability; it’s control enforced by fear,” stated Ms. Levy. “The Trump Administration has clearly signaled its unwillingness to be swayed by such superficial proposals.”
Venezuela’s current oil production stands at approximately one million barrels daily, a significant drop from the three million barrels produced when Mr. Chávez became president. Most of this oil is exported to China, with only about 100,000 barrels per day sold to the U.S. by Chevron. While many experts concur that a substantial influx of foreign investment could rapidly boost Venezuela’s oil output, opinions diverge on whether this is feasible under the existing government.
In June, Ms. Machado conveyed a clear message to American corporate representatives: “We absolutely want you here. Not just to produce a meager couple hundred thousand barrels daily, but to achieve millions of barrels a day.”
Ms. Machado chose not to provide a comment for this article.
Historically, U.S. backing for a new Venezuelan government was often articulated as a human rights imperative. However, the economic proposals discussed between Maduro’s envoys and Grenell reflected a more mercantilist perspective, consistent with policies Mr. Trump has advocated in other international contexts.
Mr. Trump has a history of prioritizing resource acquisition in foreign policy, having previously sought access to Ukrainian minerals in exchange for U.S. military aid. He also expressed regret that the U.S. did not secure Iraqi oil following the 2003 invasion and, in 2019, conditioned the presence of U.S. troops in Syria on America retaining control of oil resources.
The agreement explored by Mr. Grenell and Venezuelan officials was remarkably comprehensive, standing out as perhaps the most ambitious instance of resource-focused diplomacy during the president’s second term.
Re-establishing normal trade relations and readmitting American companies to Venezuela holds considerable appeal for some U.S. officials, given the nation’s immense oil reserves—the largest globally— alongside substantial deposits of natural gas, gold, iron, bauxite, and coltan, a crucial component for electric batteries.
Maduro’s economic overtures to the United States weren’t limited to government-to-government talks; he also reached out to the private sector, aiming to bolster his leverage in Washington.
Venezuela’s national oil company granted Chevron, the leading American firm operating there, complete control over their joint oil ventures. Discussions have also reportedly taken place regarding granting Chevron a share in another significant oil field.
Venezuelan officials have also been actively seeking to mend ties with ConocoPhillips, another major U.S. oil company that departed Venezuela in 2007 following the nationalization of its assets. Sources familiar with the ongoing talks indicate that Maduro’s government and Conoco have been negotiating a new oil trading agreement as recently as this year.
Chevron confirmed that its operations in Venezuela adhere to all relevant Venezuelan and U.S. legal requirements. ConocoPhillips did not provide a comment when requested.
According to sources briefed on the discussions, the combined efforts of Venezuelan officials and business leaders came closest to a diplomatic breakthrough in May.
In a gesture of goodwill, Mr. Grenell facilitated the return of a young Venezuelan child to her home country in May, after her parents had been deported from the United States. This action provided a domestic political victory for Mr. Maduro. Shortly thereafter, Venezuela’s government responded by releasing a U.S. Air Force veteran who had been imprisoned in Venezuela, handing him directly to Mr. Grenell.
Ultimately, Mr. Maduro endorsed most of the economic provisions outlined in the proposal discussed with Mr. Grenell.
An individual close to the negotiations revealed that Mr. Maduro initially hesitated regarding the U.S. demand to curb Venezuela’s economic partnerships with China, Russia, and Iran.
However, that person explained that Maduro eventually recognized that scaling back these alliances was a necessary cost to avert American military intervention. To boost revenue amid U.S. pressure, Venezuela also ceased oil shipments to Cuba, contributing to severe electricity shortages in the allied country.
Mr. Grenell’s economic discussions with Maduro’s representatives encountered significant resistance from Mr. Rubio. As a Cuban American and former senator, Rubio has consistently seen Maduro’s removal as essential to dismantling the Communist regime in Cuba.
Despite the prevailing opposition, advocates for economic engagement with Mr. Maduro have achieved some limited successes.
In July, Chevron saw its U.S. Treasury license to operate in Venezuela reinstated, a development confirmed by the Venezuelan government. Sources familiar with the situation indicated that Chevron successfully lobbied in Washington to reverse the ban previously imposed by Mr. Trump just months prior.
This past Wednesday, the Treasury Department issued an additional license, effectively permitting Shell, Europe’s leading energy company, to resume operations in Venezuela. An individual familiar with the agreement stated that this new permit could enable Shell to commence gas production from a colossal offshore Venezuelan field as early as next year.
The gas extracted from the Dragon field is slated for processing and sale from nearby Trinidad.
Shell referred all inquiries to the license holder, the government of Trinidad & Tobago, whose representatives did not respond to our request for comment.
Last month, Mr. Rubio affirmed that the United States would take measures to guarantee that the Dragon project would “not yield substantial benefits for the Maduro regime.”
Maduro approved a condition requiring Shell to invest in Venezuelan social initiatives rather than directly compensating his government. For the Maduro administration, the primary advantage of this arrangement is demonstrating that Venezuela remains a viable destination for international business.