By Canadian Press

Maduro taps US fugitive to revamp Venezuela oil industry

Apr 27, 2020 | 2:41 PM

MIAMI — President Nicolás Maduro on Monday named a powerful ally sanctioned by the U.S. as a drug kingpin, along with a cousin of the late socialist leader Hugo Chávez, to revamp Venezuela’s oil industry amid massive gasoline shortages.

Tareck El Aissami was appointed oil minister and Asdrúbal Chávez tapped to head of state-run oil giant PDVSA. The appointments were published in the official gazette. The government has yet to comment.

Both positions were occupied until now by Gen. Manuel Quevedo, who during his 28-month tenure watched as oil production in the country sitting atop the world’s largest petroleum reserves collapsed by 65%.

The shakeup comes amid crashing global oil prices and it follows a two-decade collapse of crude production at Venezuela’s state-ruin oil firm, which today pumps equal to 19% of levels when the late President Chávez took power in 1999.

Venezuelans in recent weeks have experienced critical gasoline shortages and mile-long gas lines lasting days even in the capital of Caracas, the seat of politics and concentration of wealth normally spared shortages across the nation.

LIKELY SHEPHERD'S FINAL TERM

2024 wrap up: Success grows in Lacombe County

18h ago

Looking back

Year in Review: Red Deer County Mayor Jim Wood proud of community growth

Dec 25, 2024

2024 reflection

Year in Review: Olds Mayor Judy Dahl thanks community following challenging year

Dec 24, 2024

U.S. Immigration and Customs Enforcement recently added El Aissami to its list of 10 most-wanted fugitives. He was sanctioned in 2017 as allegedly being a major drug trafficker and then was indicted two years later on allegations of violating those sanctions.

Despite having the world’s largest oil reserves, Venezuela’s political and social crisis continues to deepen, as the U.S. and a coalition of nearly 60 nations press Maduro to stand down. Those nations recognize opposition politician Juan Guaidó as Venezuela’s legitimate president, arguing that Maduro’s election in 2018 was a sham because the most popular opposition candidates were banned from running.

A key adviser to Maduro, El Aissami, 45, has served previously as vice-president and most recently minister of industry. El Aissami is among dozens of Maduro allies sanctioned by the United States, while Chávez has not been targeted by the Trump administration with financial measures.

Risa Grais-Targow, the director for Latin America at Eurasia Group, said El Aissami’s appointment underscores Maduro’s efforts to inject more professional management of the country’s oil industry.

While PDVSA faces multiple challenges, from low crude prices to falling production, the new oil team’s first priority will be finding gasoline supplies that are on the verge of running out as U.S. sanctions have made fuel imports harder to come by, she said.

“Within Chavismo, El Aissami is a relative pragmatist,” said Grais-Targow. “But it’s an extremely difficult situation on any front.”

She also said U.S. sanctions on El Aissami are also likely to complicate his efforts.

“This tells you they’re throwing in the towel about a sanctioned individual being an impediment to future oil deals and engaging with foreign partners,” she said. “Or maybe it’s just an implicit recognition of their reality.”

Joshua Goodman, The Associated Press