US-Venezuela Oil Deal Targets 65 Billion Barrels in Major Energy Agreement
Trump says the agreement will expand US oil access and investment, while Venezuela hopes the deal will support the revival of its struggling economy
Venezuela's vast oil reserves are at the centre of a major new agreement with the United States
The United States has reached a major agreement with Venezuela covering more than 65 billion barrels of proven oil reserves, President Donald Trump has announced, in a deal that could reshape the energy relationship between Washington and Caracas.
Trump said the US-Venezuela oil deal would significantly expand American access to oil supplies and help increase overall availability.
He also claimed the agreement could contribute to lower petrol prices for American consumers.
Venezuela’s interim President Delcy Rodriguez welcomed the agreement and said it could play an important role in rebuilding the country’s economy.
However, few details about the full terms of the arrangement have been released publicly.
The agreement follows a period of major political change in Venezuela after the US captured former president Nicolás Maduro earlier this year.
Trump has since pledged to expand access to Venezuela’s vast oil reserves, which are considered the largest proven reserves in the world.
Venezuela outlines major investment plans
Rodriguez said the agreement would involve the development of 17 strategic oil fields with proven potential of around 65 billion barrels.
She said the project could attract more than $100 billion in investment.
According to her statement, the initiative could also generate more than $209 billion in taxes for the Venezuelan state.
Rodriguez said the investment would support the recovery and modernisation of Venezuela’s oil industry.
She also said the agreement could contribute to economic growth and strengthen energy security across the Western Hemisphere.
For years, Venezuela’s oil industry has struggled with declining production, ageing infrastructure and economic difficulties.
Although the country holds an estimated 303 billion barrels of proven oil reserves, its production has fallen sharply from levels seen during the late 1990s.
The new agreement could therefore represent one of the largest efforts in years to revive Venezuela’s energy sector.
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US to hold majority control
A US official told CBS News that the American government would retain 55% control of a joint venture with an experienced private operator in Venezuela.
According to the official, Rodriguez has granted the venture a 100-year concession to operate the oil fields.
Trump did not provide detailed information about the partnership with private companies.
He said, however, that the arrangement had been reached through cooperation between US officials, Venezuela’s leadership and private business.
Trump also said the agreement would come at no cost to American taxpayers.
Secretary of State Marco Rubio described the agreement as a major benefit for both countries.
He said the investment could create thousands of high-paying jobs and support the reconstruction of Venezuela’s economy.
Questions remain over legal framework
Despite the announcements from Washington and Caracas, significant questions remain about how the agreement will operate.
The official text of the deal has not yet been released.
It is also unclear whether the agreement could face legal or constitutional challenges within Venezuela.
The arrangement appears unusual because it could give the United States significant influence over the development of another country’s sovereign natural resources.
The scale and structure of the agreement could therefore face close scrutiny from political and legal experts.
Trump has argued that expanding access to Venezuela’s oil could help strengthen American energy supplies.
The issue has gained greater importance as domestic petrol prices came under pressure during the conflict involving Iran.
Trump has also called on American oil companies to invest heavily in restoring Venezuela’s oil industry.
A new chapter for Venezuela’s oil industry
The agreement comes after years of political tensions and economic difficulties in Venezuela.
The country’s vast oil reserves have long been central to its economy.
However, falling production and infrastructure problems have reduced the industry’s ability to generate revenue at previous levels.
If the proposed investments move forward, the deal could bring significant changes to Venezuela’s energy infrastructure.
It could also increase American involvement in one of the world’s most important oil-producing regions.
For Venezuela, the potential investment offers an opportunity to rebuild a key industry and support wider economic recovery.
For the United States, greater access to Venezuelan oil could strengthen energy supplies and potentially influence global oil markets.
However, the long-term success of the US-Venezuela oil deal will depend on the final terms, the legal framework and whether the promised investment is delivered.
With details of the agreement still limited, attention is likely to focus on how Washington and Caracas plan to implement one of the most significant energy arrangements announced between the two countries in recent years.
