U.S. President Donald Trump announced on Friday a significant agreement between his administration and Venezuela that could potentially grant the U.S. access to abundant untapped oil reserves in the South American nation at a favorable cost. The deal, touted as the “BIGGEST OIL DEAL IN WORLD HISTORY,” was disclosed by Trump in a social media post, mentioning that the negotiation involved key figures such as U.S. Secretary of State Marco Rubio, U.S. Secretary of War Pete Hegseth, and Venezuela’s interim President Delcy Rodríguez.
According to a statement from Rodríguez’s government, the agreement focuses on the development of 17 fields holding an estimated 65 billion barrels of oil. The deal is anticipated to attract $100 billion in U.S. investment into Venezuela’s oil industry, generating over $209 billion in tax revenue for Caracas. Rodríguez expressed optimism about the deal’s potential impact on Venezuela’s economic revitalization.
Under the terms of the agreement, the United States is set to collaborate with an undisclosed private operator in Venezuela to establish a new private entity tasked with managing the oil reserves. Notably, the company is granted 100-year rights by Rodríguez to exploit the oil fields. The U.S. will hold a 55% effective output share in the new company, entailing ownership rights and the ability to purchase oil at production cost.
The announcement of this agreement follows a high-profile U.S. military operation, authorized by Trump, aimed at apprehending Venezuela’s former President Nicolás Maduro to face federal charges related to narcoterrorism and drug trafficking. Trump, facing mounting pressure over rising gas prices, has turned his attention to Venezuela’s oil reserves as a potential solution amidst ongoing tensions in Iran affecting global oil supply.
Despite expectations of a significant drop in gas prices following the deal, experts caution that the boost in Venezuelan oil production is a long-term endeavor requiring substantial investment and infrastructure improvements. Convincing major U.S. oil companies to return to Venezuela may face challenges due to political uncertainties and extensive infrastructure deterioration.
Trump’s push for American oil companies to re-engage with Venezuela has met with cautious interest from industry leaders, with ExxonMobil’s CEO describing the country as “un-investable” at present. However, Trump remains steadfast in asserting that his administration has brought stability to Venezuela and is actively addressing past grievances related to oil assets nationalized by previous Venezuelan governments.
The agreement, seen as a mutually beneficial move, is expected to foster significant private investment in Venezuela and contribute to lower gas prices in the United States, according to Rubio. The newly established company will supply oil for the U.S. strategic petroleum reserve and military use. Venezuela, holding one of the world’s largest oil reserves at approximately 303 billion barrels, is poised to leverage this partnership to enhance its oil production capabilities and bolster its economic prospects.
