The United States has awarded its first contract to sell seized Venezuelan oil to commodity trader Vitol, following the country’s attack on Venezuela and abduction of its president, Nicolas Maduro, earlier this month. The contract is part of a broader plan to market up to 50 million barrels of Venezuelan crude now under US control.
According to the Financial Times, the initial cargo was awarded to Vitol at a closed auction held by the US Department of Energy. A senior Vitol trader, John Addison, who met with President Donald Trump at the White House, was involved in securing the $250 million deal. Addison has been a significant donor to Trump’s reelection campaign, having contributed over $6 million to political action committees supporting the president.
The crude being sold was taken from shipments intercepted under Operation Southern Spear, a US military effort targeting sanctioned oil flows from Venezuela, Iran, and Russia. The operation has seen tankers linked to Venezuela boarded in the Caribbean and other regions, with six vessels seized in recent weeks, including the Russian-flagged Marinera northwest of Scotland. Russia has condemned the seizure as a violation of the UN Convention on the Law of the Sea and called for Maduro’s immediate release.
The Trump administration has stated that securing control over Venezuelan oil production and exports is a central pillar of its strategy. After Maduro’s abduction, Trump said the US would “run” Venezuela during a transitional period and needs “total access… to the oil and to other things in their country.” Energy trader Trafigura has also purchased around $250 million worth of Venezuelan crude under the same program.
More sales are expected to be finalized in the coming days and weeks, according to US media outlets citing an unnamed Trump administration official. The US military and Coast Guard will continue to intercept tankers linked to Venezuela, as part of the ongoing clampdown on sanctioned oil flows. The situation is being closely monitored, with Russia and other countries expressing concern over the US actions. The developments are likely to have significant implications for the global oil market and international relations.
