January 28, 2026

Casten, 12 House Dems Warn Oil Companies of Legal and Civil Risks of Venezuela Markets

Washington, D.C. — U.S. Congressman Sean Casten (IL-06) led 12 House Democrats in warning 21 major oil and oilfield services companies of the legal and financial risks posed by any transaction or investment that relies on the Trump Administration’s asserted authority to control Venezuelan oil assets. The letters were addressed to companies that either attended a January 9 meeting at the White House or have reportedly been in touch with the Trump Administration.

The lawmakers cite Congress’s constitutional war powers, U.S. obligations under the U.N. Charter, and limits on the President’s authorities under the International Emergency Economic Powers Act (IEEPA), stating that the Administration has not provided Congress or the public a full explanation of the legal basis it claims under U.S. or international law to exert control over Venezuelan state property.

“We urge you, therefore, to bear in mind that it is possible that efforts to invalidate any such arrangements might be made by Congress, a subsequent Administration, or a future Venezuelan government, and that participation might present your company with legal and enforcement risk,” the lawmakers wrote. “Similarly, we urge you to consider that any informal assurances, inducements, or understandings offered by the current Administration might not be recognized by future U.S. administrations.”

The letter emphasizes that any arrangement to sell, license, or otherwise convey interests in Venezuelan oil reserves and related assets could expose participating firms and shareholders to significant long-term risk, including potential civil liability from Venezuela’s creditors. Furthermore, Congress, a future Administration, or a future Venezuelan government can attempt to invalidate any arrangements brokered by the US to extract Venezuelan oil.

In addition to Rep. Casten, the letter was signed by House Financial Services Committee Ranking Member Maxine Waters, House Natural Resources Committee Ranking Member Jared Huffman, House Foreign Affairs Committee Ranking Member Gregory Meeks, and Representatives Mike Levin, David Min, Mike Quigley, Don Beyer, Lori Trahan, Yvette Clarke, Sam Liccardo, Nikema Williams, and Shri Thanedar.

The letters were sent to Aspect Holdings, Baker Hughes, BP, Chevron, ConocoPhillips, Continental, Exxon, Eni, Halliburton, Hilcorp, HKN, Marathon, Phillips 66, Raisa Energy, Repsol, Shell, SLB, Tallgrass, Trafigura, Valero, and Vitol.

Text of the letter can be found below. Copies of the letters can be found linked for each company above.

We write as members of Congress to advise you that any actions you may be taking with the Trump White House as relates to Venezuelan oil may expose you and your shareholders to significant long-term legal and financial risk.

As you are aware, Article I of the U.S. Constitution gives Congress the authority to declare war. Additionally, the War Powers Act provides that the United States may not enter into hostilities without the consent of Congress. Furthermore, under Article 2(4) of the United Nations Charter, the United States may not lawfully use force against another sovereign state absent authorization from the UN Security Council or a valid claim of self-defense consistent with Article 51.

The Trump White House has asserted that its attacks on boats operated by Venezuelan nationals in international waters did not require those authorizations because they were protecting Americans from narco-terrorism by non-state actors. The Administration has also asserted that the capture of Nicolás Maduro and his wife required no congressional authorization because they had been indicted in U.S. courts and were being taken into custody for prosecution.

Without commenting on the merits of those legal arguments, the Trump Administration has not provided Congress or the American public with a full explanation of the legal authority it claims under U.S. or international law to exert control over Venezuelan state property.

In this regard, we would like to remind you that under the International Emergency Economic Powers Act (IEEPA), the President has the authority to freeze or restrict certain transactions involving foreign assets within U.S. jurisdiction in response to a declared national emergency. However, IEEPA generally does not authorize the United States to take ownership of a foreign sovereign’s assets or permanently transfer rights in them, except in the narrow circumstance where the United States is engaged in armed hostilities or has been attacked.

Since the Trump Administration has neither provided an adequate explanation nor requested the legal authority from Congress or the UN Security Council, we are troubled by:

  1. the President’s assertions that his Administration has engaged with U.S. oil companies in connection with its actions toward Venezuela, both prior to and following the operation in which U.S. forces took custody of President Nicolás Maduro and his wife, and;

  2. the President’s further statements that Venezuela would deliver 30 million to 50 million barrels of oil to the United States, and that his Administration would control the proceeds from the sale of the oil, purportedly “to benefit the people of Venezuela and the United States.”

These statements indicate to us that the Administration may be seeking to sell, license, or otherwise convey interests in Venezuelan oil reserves and related assets. The President is, of course, free to say whatever he wants. But to the extent that any private entity enters into arrangements with the United States regarding Venezuelan resources under these circumstances, such entity may be exposed to legal risk, including civil liability from creditors who hold nearly $200 billion worth of debt to Venezuela and their various state-owned entities.

The Trump administration has indicated that it is working with acting President Delcy Rodríguez to enter into agreements. In light of the circumstances, there may be a risk that any such instruments may be subject to challenge as void or voidable under coercion principles in international law, including those related to the invalidation of agreements procured through the threat or use of force.

We urge you, therefore, to bear in mind that it is possible that efforts to invalidate any such arrangements might be made by Congress, a subsequent Administration, or a future Venezuelan government, and that participation might present your company with legal and enforcement risk. Similarly, we urge you to consider that any informal assurances, inducements, or understandings offered by the current Administration might not be recognized by future U.S. administrations.

For these reasons, we strongly urge you to decline to participate in any transaction or arrangement that relies on the Trump Administration’s asserted authority to control Venezuelan oil assets.

Sincerely,

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