US President Donald Trump says his administration has reached what he described as a historic oil agreement with Venezuela, giving the United States majority control of about 65 billion barrels of proven oil reserves.
According to US and Venezuelan officials, the deal is expected to attract nearly $100 billion in private investment into Venezuela’s oil industry and economy.
Venezuela has the world’s largest proven oil reserves. The agreement comes after Washington removed longtime Venezuelan leader Nicolás Maduro from power in January and allowed Vice President Delcy Rodríguez to serve as interim leader.
Trump said the agreement would more than double US oil reserves and strengthen economic ties between the two countries.
Rodríguez described the deal as a “historic agreement”, saying it could significantly contribute to Venezuela’s economic recovery. She said the investment could exceed $100 billion, while the Venezuelan government could receive more than $209 billion in tax revenue.
US Secretary of State Marco Rubio said the agreement would help secure stable oil supplies, reduce energy costs in the United States and bring major investment and jobs to Venezuela.
However, energy experts say several questions remain unanswered, particularly regarding how ownership and control of Venezuela’s oil assets would be transferred to US interests.
Reports indicate that negotiations had involved several major Venezuelan oil fields containing billions of barrels of proven reserves. American and other private companies are expected to develop the fields in exchange for ownership stakes and increased access to oil revenues.
The agreement comes as high gasoline prices remain a political concern in the United States ahead of the November midterm elections. The US administration has been encouraging American companies to invest in Venezuela, although concerns remain over the country’s ageing infrastructure and the security of foreign investments.
Chevron, the only major US oil company still operating in Venezuela when Maduro was removed, has already increased its crude production and plans further expansion by 2028.
Energy expert John Kilduff said the key issue for investors would be whether the new arrangement can provide sufficient protection against political and security risks in Venezuela.
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