Politics
NEW: U.S. Signs Landmark Oil Deal With Venezuela
President Donald Trump announced Friday that the United States had entered an agreement with Venezuela concerning more than 65 billion barrels of the South American country’s proven oil reserves. The announcement followed weeks of negotiations involving Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela’s interim President Delcy Rodríguez.
“The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY! At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer,” the president announced in a Truth Social post.
Trump went on to state that the move will more than double American oil reserves, revitalize Venezuela’s economy and contribute to lower gas prices for U.S. citizens for years to come. “This Transaction will greatly strengthen the already growing relationship between Venezuela and the United States,” the president added.
“This deal is a huge win for both the American and Venezuelan people. It demonstrates how President Trump’s bold foreign policy is driving America First wins: securing stable reserves and low-cost oil in our Hemisphere and lowering gas prices here at home,” said Secretary of State Marco Rubio. “For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela’s economy.”
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Venezuela holds the world’s largest proven oil reserves, estimated at 303 billion barrels. The agreement covers a portion of those reserves through the development of 17 strategic fields. According to a statement from Rodríguez’s government, the fields have a proven potential of 65 billion barrels.
The Venezuelan government said the agreement could attract $100 billion in investment into the country’s oil industry and generate more than $209 billion in taxes. Rodríguez stated that the deal “will have a significant impact on our nation’s revival” and that “the agreement will allow for a significant increase in oil production with the participation of private operators.”
She also said the investments “will contribute not only to the recovery and modernization of our industry, but also to our country’s economic growth, the energy security of our hemisphere, and greater balance in international markets.”
A U.S. official familiar with the agreement told the Associated Press that the deal establishes a new private joint venture involving the U.S. government and an experienced private operator in Venezuela. Rodríguez granted the venture 100-year concessions to develop the relevant fields. The United States is to receive 55 percent effective output from the venture, consisting of an ownership stake and the right to purchase oil at cost. The official indicated the venture could become the second-largest private holder of proven oil reserves after Saudi Aramco.
The announcement occurred as Chevron, the second-largest U.S. oil company, was in advanced talks to expand its operations in Venezuela. Venezuelan officials were preparing to sign related agreements in the following week granting new exploration and production rights, particularly to U.S. firms
Under the Chavez and Maduro regimes, Venezuela’s oil production had declined substantially from its peak in the late 1990s and currently stands at approximately 1.25 million barrels per day. The United States has sought a stable supply of Venezuelan crude for its refineries following the January operation that resulted in the removal of former President Nicolás Maduro and the installation of Rodríguez as interim leader.
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