US President Donald Trump says his administration has reached an agreement with Venezuela that gives the United States control over oil reserves estimated at more than 65 billion barrels.
Trump described the arrangement as a historic breakthrough, saying it could more than double America’s oil reserves and help bring down fuel prices for consumers.
The agreement covers 17 strategic oil fields and is expected to attract more than $100 billion in investment to Venezuela’s petroleum industry, according to Venezuelan interim President Delcy Rodríguez.
Rodríguez said the deal would remain in place for 25 years and aims to increase Venezuela’s crude production to 1.5 million barrels per day.
She said the arrangement would provide significant revenue for Venezuela while supporting the rehabilitation and modernisation of its struggling oil sector.
Under the agreement, the US government is expected to hold a 55 per cent stake in a joint venture involving a private operator with experience in Venezuela’s oil industry.
US Secretary of State Marco Rubio described the agreement as beneficial to both countries, saying it could generate major private investment, create jobs and contribute to the reconstruction of Venezuela’s economy.
Trump said the deal was negotiated by Rubio and Defence Secretary Pete Hegseth in partnership with private businesses and would come at no cost to American taxpayers.
However, the agreement has raised questions among energy experts and Venezuelan opposition figures, particularly because the full terms have not been publicly released.
Critics are also questioning whether the arrangement complies with Venezuela’s constitution and hydrocarbons laws.
Energy consultant David Goldwyn said there was no clear precedent for the US government taking such a role in operating Venezuelan oil fields. He also pointed to Venezuela’s weak electricity infrastructure, limited export capacity and political uncertainty as potential barriers to large-scale investment.
Other analysts said the agreement could eventually support Venezuela’s economic recovery but would not immediately increase global oil supplies.
Venezuela possesses the world’s largest proven crude reserves, estimated at about 303 billion barrels. However, its oil production has fallen sharply from levels recorded in the late 1990s following years of underinvestment, operational problems and US sanctions.
Trump has increasingly focused on Venezuela’s oil resources as his administration seeks to ease pressure on US fuel prices, which have risen amid disruptions to global crude supplies linked to the conflict involving Iran.
Despite Venezuela’s huge reserves, much of its crude is heavy and sour, requiring specialised refining. The US, meanwhile, produces mainly lighter crude that is more suitable for petrol production.
Trump has called on American energy companies to commit at least $100 billion toward rebuilding Venezuela’s oil industry, although analysts say the scale and timing of any production increase remain uncertain.
