United States Reaches Deal to Manage Venezuelan Oil Reserves

The United States has entered into an agreement with Venezuela concerning the management of more than 65 billion barrels of the South American nation’s oil reserves, according to public announcements by US President Donald Trump and Venezuelan interim President Delcy Rodríguez.

In an address on Saturday, Rodríguez stated that the energy pact will remain active for 25 years and focus on the rehabilitation and development of 17 strategic oil fields. She said the initiative seeks to increase national crude production to 1.5 million barrels per day, drawing over $100 billion in private capital and yielding more than $209 billion in tax revenue for the state. Rodríguez framed the agreement as a vital measure for national economic revival that maintains sovereign ownership over natural resources.

President Trump claimed the arrangement would double US energy reserves and reduce domestic petrol prices. He stated that US Secretary of State Marco Rubio and Defence Secretary Pete Hegseth arranged the deal through partnerships with private enterprise, adding that the arrangement incurred no cost to American taxpayers. An unnamed US official told reporters that under the terms, the US government would hold a 55 percent controlling interest in a joint enterprise with an experienced private operator, supported by a 100-year concession granted by Caracas.

However, the complete text of the bilateral accord has not been published, prompting concern among Venezuelan opposition figures and international legal experts. Henrique Capriles, an opposition lawmaker in Venezuela, criticized the lack of official details and questioned the legal and constitutional grounding of the transaction. Energy policy analysts also highlighted that direct governance by a foreign state over sovereign petroleum reserves presents unprecedented legal questions under local hydrocarbon legislation.

Market experts remain cautious about the timeline for any tangible increase in output. Industry observers point to severe structural impediments in Venezuela, including an unreliable electrical network, restricted export facilities, and persistent political risk. Reports from American financial media indicated that major US energy firms were negotiating contracts to refurbish infrastructure across undeveloped Venezuelan fields. However, energy analyst Rachel Ziemba stated that the arrangement would likely have no material effect on global oil markets in the near term, while legal expert Alexander Kuiper emphasized that key details regarding the timeline for turning commitments into actual crude output remain unknown.

Background

Venezuela possesses the world’s largest proven crude oil reserves, estimated at roughly 303 billion barrels. However, national production has fallen dramatically over recent decades due to underinvestment, internal mismanagement of state oil operations, and targeted economic sanctions imposed by Washington.

The diplomatic landscape shifted significantly in January 2026, when US forces captured Venezuelan President Nicolás Maduro in Caracas to face federal drug charges in New York. Following the raid, Washington extended backing to Vice President Delcy Rodríguez as interim leader, while President Trump asserted that the US would assume control over Venezuelan oil sales.

The agreement also arrives as the US administration faces domestic political pressure over rising petrol prices, which have spiked due to an ongoing international conflict involving Iran.