The proposed agreement aims to revive Venezuela’s struggling oil industry, attract private investment and increase crude supplies for the United States.
WASHINGTON: President Donald Trump says the United States has reached a Venezuela oil deal that would give American interests majority control over more than 65 billion barrels of the country’s proven oil reserves.
Trump announced the agreement on Friday, describing it as a major step towards reviving Venezuela’s struggling energy industry and securing additional crude supplies for the United States. However, important details about the legal and commercial structure of the arrangement have yet to be disclosed.
The US president said the agreement was developed through a partnership with private businesses and would not cost American taxpayers.
According to reports, the arrangement involves the development of 17 Venezuelan oil fields with proven reserves of approximately 65 billion barrels. Venezuelan interim leader Delcy Rodriguez has welcomed the agreement, saying it could attract around $100 billion in private investment and generate significant tax revenue for the country.
The proposed partnership follows negotiations between Washington and Caracas over long-term access to Venezuela’s vast oil reserves.
Reports indicate that US companies could receive new rights to explore and develop oil fields, particularly in the oil-rich Orinoco Belt and Lake Maracaibo regions. However, the exact companies involved and the final structure of the agreements remain unclear.
US Secretary of State Marco Rubio described the arrangement as beneficial to both countries. He said increased investment could help revive Venezuela’s oil industry while providing the United States with additional supplies of crude oil.
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Meanwhile, Rodriguez said the development of strategic oil fields could support Venezuela’s economic recovery and modernise its energy infrastructure. She also argued that greater investment could strengthen regional energy security and increase the country’s role in international oil markets.
Despite holding some of the world’s largest proven oil reserves, Venezuela produces far below its potential. Years of underinvestment, infrastructure problems, political uncertainty and sanctions have weakened the country’s oil industry.
Analysts have also warned that the agreement may face significant legal and financial challenges. Venezuela’s oil industry has historically remained under strong state control, and any major restructuring could raise constitutional and regulatory questions.
Political uncertainty, an unreliable electricity system, damaged infrastructure and limited export capacity could also discourage large-scale investment, analysts say.
The proposed agreement is also unlikely to deliver an immediate reduction in gasoline prices in the United States.
Venezuela’s heavy crude requires substantial investment in production, transportation and refining infrastructure. Experts have therefore warned that increasing production and exports significantly could take years.
The development comes as the Trump administration seeks additional sources of crude oil and explores options to strengthen US energy supplies.
For Venezuela, the agreement could represent a significant opportunity to attract international investment into an industry that has suffered from years of declining production and limited infrastructure investment.
However, the long-term success of the plan will depend on its final legal structure, investor confidence and Venezuela’s ability to rebuild and expand its oil infrastructure.
If fully implemented, the agreement could mark one of the most significant recent changes in the relationship between Washington and Caracas, while giving the United States a major new role in the development of Venezuela’s vast oil reserves.
