US President Donald Trump has announced what he described as a “historic” agreement. One that would give the United States control over more than 65 billion barrels of Venezuela’s proven oil reserves.
Trump said the deal would more than double US oil reserves, increase the country’s oil supply and help reduce petrol prices for American consumers.
“This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans,” Trump said in a post on social media.
Venezuela’s interim President, Delcy Rodriguez, also welcomed the agreement, saying it would play a significant role in the country’s economic recovery.
The deal comes after the United States captured Venezuela’s former president, Nicolás Maduro, earlier this year. Trump had subsequently vowed to tap into Venezuela’s vast oil reserves as his administration sought greater control over the country’s energy sector.
The agreement also comes as Trump faces pressure over rising petrol prices in the US. This has resulted from disruptions in global energy markets amid the conflict with Iran.
US to Control 55% of Joint Venture
US Secretary of State Marco Rubio described the agreement as “a huge win for both the American and Venezuelan people”.
Rubio said the deal would bring almost $100 billion in private investment to Venezuela, create thousands of high-paying jobs and support the reconstruction of its economy. However, Washington and Caracas have released few details about the agreement.
Trump said Rubio and Defence Secretary Pete Hegseth negotiated the deal with Venezuela’s leadership through a partnership involving private businesses. He did not disclose the identity of the private operator, the precise terms of the agreement or what commitments the United States would make under the arrangement.
Trump also claimed the deal was reached “at no cost to the American Taxpayer”. According to a US official who spoke to the BBC’s media partner CBS News, the US government will retain a 55% controlling stake in a joint venture with an experienced private oil operator in Venezuela.
The official said Rodriguez had granted the venture a 100-year concession to operate the oil fields covered by the agreement.
Deal Covers 17 Venezuelan Oil Fields
Rodriguez said the agreement provides for the development of 17 strategic oil fields with a proven potential of 65 billion barrels. She said the arrangement would involve more than $100 billion in investment and generate more than $209 billion in taxes for the Venezuelan state.
“These investments will contribute not only to the recovery and modernization of our industry, but also to our country’s economic growth, the energy security of our hemisphere, and greater balance in international markets,” Rodriguez said.
She described the agreement as having a “significant impact” on Venezuela’s economic revival. The proposed arrangement would give American interests an unusually significant role in the management of another country’s natural resources.
However, the full agreement between Washington and Caracas has not yet been made public. This leaves questions over its legal basis, constitutional implications and the precise extent of US control. It is also unclear whether the agreement could face legal challenges in Venezuela.
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