US President Donald Trump has described a new oil agreement with Venezuela as the “biggest oil deal in world history”, claiming it will significantly increase American access to crude and help ease gasoline prices.
Trump said the United States had secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through a partnership involving the Venezuelan government and private companies.
“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 US control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer,” Trump wrote on Truth Social.
He said the arrangement would strengthen US energy supplies and “MORE THAN DOUBLE” American oil reserves.
Venezuela expects major investment
Venezuelan interim President Delcy Rodriguez welcomed the agreement, saying it could generate substantial revenue for the country while helping rebuild its oil infrastructure.
According to Rodriguez, the plan covers 17 key oil fields with proven reserves of about 65 billion barrels. Private companies are expected to play a major role in increasing production and upgrading infrastructure.
The projects could attract more than $100 billion in investment and generate over $209 billion in taxes for Venezuela, she said.
“Venezuela is thus ushering in a new era of recovery, growth, production, security, and prosperity for our people,” Rodriguez said.
US to get 55% share of output
A White House official said the arrangement would give the US an effective 55% share of the oil produced by a new private joint venture.
The company is expected to operate the oil fields under 100-year concessions granted with US backing. The US government would hold more than half the value of the new company through equity ownership and guaranteed purchases of oil at cost.
The oil would be used to replenish the US Strategic Petroleum Reserve and meet the energy requirements of the American military.
Deal comes amid disruption in oil flows
The agreement comes as the six-month US war on Iran has disrupted oil shipments through the Strait of Hormuz, a major global energy chokepoint. Before the conflict, around 20% of global energy supplies moved through the strait. Reduced shipping has pushed producers, traders and governments to seek alternative sources.
Trump had initially taken a tough position towards Rodriguez, warning of severe consequences if she failed to cooperate with Washington after becoming interim president.