US President Donald Trump has announced a major oil deal with Venezuela that would give the United States majority control of 65 billion barrels of proven oil reserves.
Trump described the agreement as “the biggest oil deal in world history,” saying it would attract nearly $100 billion in private investment to Venezuela.
Venezuela, which holds the world’s largest proven oil reserves, confirmed the agreement on Friday.
Interim President Delcy Rodriguez described it as a historic deal that would have a major impact on the country’s economic recovery.
Trump said the agreement was reached by US Secretary of State Marco Rubio and Defence Secretary Pete Hegseth in partnership with private companies and the Venezuelan government.
Rodriguez said the investment could exceed $100 billion and generate more than $209 billion in tax revenue for Venezuela.
Rubio said the deal would strengthen US access to oil reserves in the Western Hemisphere, lower energy costs and support the rebuilding of Venezuela’s economy.
However, details of the agreement remain unclear, including how ownership of the oil assets would be transferred to US interests.
Jorge Pinon, a senior researcher at the Energy Institute at the University of Texas at Austin, said questions remained over whether the arrangement involved an outright sale, a transfer of title or ownership linked to future oil production.
The deal comes after months of pressure from the Trump administration on Venezuela and efforts to encourage American companies to invest in the country’s oil industry.
US energy companies have remained cautious because of Venezuela’s ageing infrastructure and concerns over the security of foreign investments.
Chevron, the only major US oil company still operating in Venezuela when former President Nicolas Maduro was removed in January, increased its crude production to 280,000 barrels per day in July and plans to raise output further.
Energy analyst John Kilduff said the agreement could reduce some of the political risks facing US companies if Washington takes control of the oil fields.
The deal is expected to attract further scrutiny as more details emerge about the ownership structure, investment commitments and the share of oil revenues that will go to Venezuela.
