Deal with Venezuela’s interim government involves partnership with private firms and is framed as boosting American energy security while aiding reconstruction in the South American nation.
US President Donald Trump has announced that the United States has secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through an agreement with the country’s interim leadership.
In a social media post on Friday, Trump said the deal was reached “at no cost to the American taxpayer” via a partnership with private business. He credited Secretary of State Marco Rubio and Defense Secretary Pete Hegseth with negotiating the arrangement alongside Venezuela’s interim President Delcy Rodríguez.
Trump described the agreement as “the biggest oil deal in world history,” claiming it would more than double American oil reserves, increase supply and substantially lower petrol prices for US consumers. Venezuela holds the world’s largest proven crude reserves, estimated at around 300 billion barrels, so the figure cited represents a significant but partial share of the total
US Secures Major Stake in Venezuela Oil Venture:
According to US officials, the deal centres on a new private joint venture that has been granted 100-year concessions over oil fields containing roughly 65 billion barrels of proven reserves. The United States is said to hold an effective 55 percent stake in the venture’s output, split between equity ownership and the right to obtain oil at cost. The resulting supply is intended to help replenish the US Strategic Petroleum Reserve and meet military needs.
Secretary of State Rubio said the pact would bring nearly $100 billion in private investment, create thousands of jobs and support the reconstruction of Venezuela’s economy. Rodríguez welcomed the agreement, stating it would allow development of 17 strategic fields and generate substantial tax revenue for the Venezuelan government.
Venezuelan officials are preparing to sign related exploration and production agreements in the coming days, with particular emphasis on US firms. Chevron, already active in the country, has been in advanced talks to expand its operations.
US Expands Control Over Venezuela’s Oil Sector:
The announcement follows the US military operation earlier this year that led to the capture of former President Nicolás Maduro and the installation of Rodríguez as interim leader. Since then, Washington has exerted significant influence over Venezuela’s oil exports and has sought to revive production, which has fallen sharply from peak levels due to years of underinvestment, mismanagement and sanctions.
Venezuela currently produces about 1.25 million barrels per day, far below its potential. Much of its oil is heavy crude that requires substantial infrastructure and investment to extract and process. Officials and analysts note that legal questions, weak infrastructure and security concerns could complicate full implementation of the deal.
Supporters of the agreement argue it will secure long-term US energy supplies at a time of global disruption, help stabilise fuel prices and inject capital into a depleted Venezuelan industry. Critics are likely to question the sovereignty implications of a foreign government taking majority control of another nation’s natural resources, as well as the unusual nature of the US federal government holding a direct stake in overseas oil fields.
The arrangement marks a major expansion of American involvement in Venezuela’s energy sector. Whether it can deliver the promised production increases, investment and price effects will depend on the speed of private sector engagement, the resolution of legal and logistical hurdles, and the political stability of the interim government in Caracas.