US President Donald Trump has announced that his administration has reached what he described as a “historic” oil agreement with Venezuela, giving the United States majority control of more than 65 billion barrels of Venezuela’s proven oil reserves.
Trump said the agreement was reached through a partnership involving private businesses, with Secretary of State Marco Rubio and Secretary of War Pete Hegseth working with Venezuelan interim President Delcy Rodríguez.
According to Trump, the deal will come at no cost to American taxpayers and will more than double the United States’ oil reserves while increasing supply and potentially reducing gasoline prices for American consumers.
The agreement reportedly covers the development of 17 strategic oil fields and could attract nearly $100 billion in private investment into Venezuela’s struggling oil industry. Venezuelan authorities also estimate that the arrangement could generate more than $209 billion in tax revenue for the country.
A US official said the arrangement would give the United States about 55 per cent effective output from a new private joint venture through a combination of equity ownership and rights to purchase oil at cost.
However, important details of the agreement, including the companies involved and the precise legal structure of US control, have not yet been fully disclosed. The arrangement could also face legal and constitutional questions in Venezuela.
Venezuela holds the world’s largest proven oil reserves, estimated at about 303 billion barrels, although years of underinvestment, sanctions and deteriorating infrastructure have significantly reduced its production capacity.
Trump has described the agreement as one of the biggest oil transactions in history, while Venezuelan officials have presented it as a major step towards rebuilding the country's energy sector and economy.
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