US and Venezuela Announce Agreement to Control 65 Billion Barrels of Oil

The United States and Venezuela have announced a landmark energy agreement that grants Washington control over a major portion of the South American nation’s vast crude reserves, according to statements from officials in both countries.

US President Donald Trump announced the deal on social media, describing it as “THE BIGGEST OIL DEAL IN WORLD HISTORY!” and asserting that it was reached “at no cost to the American taxpayer.” Trump stated the transaction involves 65 billion barrels of oil, an amount equal to slightly more than 20% of Venezuela’s total proven reserves. He added that the arrangement would substantially lower domestic gasoline prices and more than double American oil reserves.

The deal was negotiated by US Secretary of State Marco Rubio, US Defense Secretary Pete Hegseth, and Venezuelan interim President Delcy Rodriguez. According to Rodriguez, the agreement focuses on the development of 17 strategic oil fields. She estimated it would generate $100 billion in private sector investment and yield over $209 billion in tax revenues for the Venezuelan treasury, calling it an essential step toward the “rebirth of our nation.”

Rubio welcomed the accord, stating on social media that “this deal is a huge win for both the American and Venezuelan people.” He noted that the plan aims to secure stable, low-cost oil for the US while driving economic reconstruction across Venezuela.

Although the full text of the agreement has not been made public, an unnamed US official cited by news outlets stated that the US government will hold a 55% controlling interest in a joint venture operating in Venezuela. The official added that the interim Venezuelan government granted the venture a 100-year concession to operate the designated oil fields alongside a private operator.

Reports from news organizations indicate the arrangement relies heavily on commercial involvement. Reuters reported that field leases to US oil producers were under consideration, while Axios described the deal as a public-private partnership connecting both governments with American oil companies.

Questions remain over how the accord will be implemented, as well as potential legal or constitutional challenges within Venezuela regarding direct foreign government management of sovereign national resources.

Background

Venezuela possesses the world’s largest proven oil reserves, estimated at 303 billion barrels. However, national petroleum output has declined significantly in recent decades due to prolonged mismanagement, aging infrastructure, and international economic sanctions.

The political landscape in Caracas shifted dramatically in January following a US military operation that deposed Venezuelan President Nicolás Maduro and his wife, Cilia Flores. Maduro was transported to New York City, where he currently faces federal drug trafficking and narcoterrorism charges. Following the raid, Trump stated that the US administration would oversee Venezuela until a political transition occurred, claiming control over the country’s oil sales as compensation for past nationalizations of American assets.

Under interim President Delcy Rodriguez, the administration in Caracas has faced intense pressure from Washington to open its energy sector to foreign investment. The new agreement comes as US domestic gasoline prices have experienced upward pressure due to regional conflict in Iran, and as the US Strategic Petroleum Reserve sits at a 40-year low.