Washington
US President Donald Trump has announced what he described as the “biggest oil deal in world history” with Venezuela, saying the agreement gives the United States majority control of more than 65 billion barrels of the South American country’s proven oil reserves.
Trump said the deal was reached through cooperation between US officials, Venezuela’s interim government and private businesses.
Trump said Secretary of State Marco Rubio and Secretary of War Pete Hegseth worked with Venezuelan interim President Delcy Rodriguez to finalise the agreement. He said the arrangement would not cost American taxpayers and would more than double US oil reserves. The announcement comes as Washington seeks to strengthen energy supplies and bring down high fuel prices amid continuing global tensions.
Under the proposed arrangement, a new venture involving US interests and a private operator is expected to develop 17 Venezuelan oil fields. The United States would receive a majority operational share, while the agreement is expected to attract about $100 billion in private investment for Venezuela’s oil industry. Caracas could also receive substantial tax revenues from expanded production.
The agreement focuses on reviving Venezuela’s ageing oil infrastructure and increasing production from major reserves in areas including the Orinoco Belt and Lake Maracaibo. However, analysts have questioned how quickly the plan can deliver additional oil because Venezuela’s energy infrastructure has suffered from years of underinvestment, while its heavy crude requires significant processing and technical investment.
The deal also carries major political and legal implications. Venezuela had historically maintained strong state control over its petroleum industry, while the new arrangement represents a significant shift towards private and foreign participation. Trump’s announcement comes as the United States faces pressure over fuel prices and seeks additional supplies. Although the agreement could eventually boost Venezuelan output, experts say substantial increases may take years to materialise.
