Washington DC: US President Donald Trump on Friday announced a sweeping oil agreement with Venezuela that he said would give the United States majority control over more than 65 billion barrels of the South American nation’s proven crude reserves.
Trump described the arrangement as the ‘biggest oil deal in world history’, saying it was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and Venezuelan interim President Delcy Rodriguez through a partnership with private businesses.
According to Trump, the agreement comes at “no cost to the American taxpayer” and will more than double U.S. oil reserves, expand supplies and bring down gasoline prices for Americans over the long term.
Trump also said the deal would help put Venezuela’s battered economy on a path toward recovery while strengthening ties between Washington and Caracas.
Rodriguez welcomed the agreement, saying it would facilitate the development of 17 strategic oil fields. Venezuelan officials said the plan is expected to attract more than $100 billion in investment and generate substantial government revenue.
The announcement follows months of intensified US involvement in Venezuela’s energy sector, including diplomatic pressure, sanctions enforcement and efforts to reshape the country’s oil industry following the ouster of former President Nicolas Maduro.
The US military captured Maduro in January and transferred him to the United States to face federal charges including narco-terrorism and drug trafficking. Maduro and his wife have pleaded not guilty and are scheduled to face trial in New York in 2027.
The timing of the oil agreement is significant for Trump’s administration as it confronts elevated gasoline prices amid the ongoing war with Iran. The conflict has entered its sixth month, adding pressure to global energy markets.
The US Strategic Petroleum Reserve also fell below 300 million barrels earlier this month, down by more than 100 million barrels since January, increasing the administration’s focus on securing additional energy supplies.
Trump had previously signaled plans to encourage US oil companies to return to Venezuela, arguing that American assets were seized after the government of former Venezuelan President Hugo Chavez nationalized foreign-owned properties.
Venezuela possesses the world’s largest proven crude oil reserves, estimated at roughly 300 billion barrels. Yet its oil industry has struggled for years because of aging infrastructure, underinvestment and political and economic turmoil. The country currently accounts for only a small share of global oil production despite the size of its reserves.
The precise legal and financial structure of the new agreement has not been fully disclosed. Reuters reported that the arrangement would give the United States a controlling stake in projects involving a significant portion of Venezuela’s reserves, while raising questions over the costs, legal framework and challenges involved in rebuilding the country’s oil infrastructure.
Trump has nevertheless presented the agreement as a major energy victory for the United States, arguing that increased Venezuelan production will strengthen American energy security and eventually put downward pressure on fuel prices.
For Venezuela, the deal could bring a massive influx of private investment into an oil industry that has suffered years of decline. For Washington, it represents a significant expansion of U.S. influence over one of the world’s largest untapped sources of crude in the Western Hemisphere.
