President Donald Trump has announced that the US has reached a deal with Venezuela to control more than 65 billion barrels of its proven oil reserves.
“This historic transaction more than doubles American oil reserves, greatly increases our oil supply, and will substantially lower gas prices for all Americans,” Trump posted on social media.
Venezuela’s acting president, Delcy Rodríguez, praised the deal as one that would aid her country’s economic recovery.
Trump promised to access Venezuela’s reserves, the largest globally, after the US detained its former president, Nicolás Maduro, this year. Recently, Trump has faced pressure to control domestic fuel prices, which surged during the Iran conflict.
Secretary of State Marco Rubio referred to the oil agreement as “a significant victory for both the American and Venezuelan populations.” Limited information was disclosed.
“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,” Rubio said on social media.
In his post, Trump stated that Rubio and Defense Secretary Pete Hegseth had come to an agreement with Venezuela’s leadership “via a collaboration with private enterprise.”
He did not provide details about the partnership or outline potential commitments and terms for the US in the agreement, but he asserted that the deal was made “at no cost to the American taxpayer.”
Venezuela’s acting president remarked in a statement that the pact would have “a considerable effect on our country’s resurgence.”
The agreement includes the development of 17 key oil fields with a confirmed potential of 65 billion barrels, alongside “an investment of more than $100 billion and more than $209 billion in taxes for the state,” Rodriguez stated.
“These 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,” she said.
According to a US official speaking to CBS News, the agreement stipulates that the US government will hold a 55% stake in a joint venture with a “skilled private operator in Venezuela.”
According to the official, Rodriguez granted the venture a 100-year license to operate in the oil fields.
Trump provided limited details about the unusual deal, which seemingly allows the US direct control over the sovereign national resources of a foreign nation.
The agreement seems to be broader in range than the control exercised by the US-led Coalition Provisional Authority over Iraq’s oil income following the removal of Saddam Hussein in the 2003 American-led invasion.
However, it is uncertain if the Venezuela agreement might encounter legal and constitutional obstacles in the South American country. The formal document of the accord between Washington and Caracas has not been made public.
President Maduro and his spouse, Cilia Flores, were captured in a US special forces mission approved by Trump on January 3.
In the aftermath of the raid, Trump stated that his administration would govern Venezuela until a “safe, proper, and judicious transition” occurred, also noting that the US would retain indefinite control over the sale of the nation’s oil.
Venezuela possesses the largest confirmed oil reserves globally, with an estimated 303 billion barrels.
Nonetheless, output has drastically decreased since its high point in the late 1990s.
Trump has urged US oil companies to allocate a minimum of $100bn (£75bn) to revive the nation’s oil sector.
He has furthermore asserted claims to Venezuela’s oil after stating that the nation had previously “unilaterally seized and sold American oil, American assets, and American platforms, costing us billions and billions of dollars.”
