Trump hails 'historic' deal for US to control 65bn barrels of Venezuela's oil

US and Venezuela Agree on Joint Development of Oil Fields with 65 Billion Barrels in Proven Reserves

The United States and Venezuela have reached an agreement for joint development of oil fields containing more than 65 billion barrels of proven reserves, according to statements from both governments. US President Donald Trump said the arrangement would more than double American oil reserves and lower gasoline prices for US consumers. Venezuelan interim President Delcy Rodríguez described the 25-year energy agreement as a measure to increase crude output to 1.5 million barrels per day while maintaining Venezuelan sovereignty over its resources.

Rodríguez, who assumed the interim presidency after the January capture of former President Nicolás Maduro by US forces, stated that the deal targets development of 17 strategic oil fields. She said it includes more than $100 billion in investment and more than $209 billion in taxes for Venezuela. Rodríguez added that the investments would support recovery of the oil industry, economic growth, hemispheric energy security, and balance in international markets. She specified that the agreement would remain in force for 25 years.

A US official told CBS News that the US government would hold 55 percent control of a joint venture with an experienced private operator in Venezuela. The official said Rodríguez granted the venture a 100-year concession to operate in the designated fields. US Secretary of State Marco Rubio stated that the deal would bring nearly $100 billion in private investment to Venezuela, support thousands of jobs, and aid economic reconstruction.

Trump said the agreement was reached through a partnership with private business involving Rubio and Defense Secretary Pete Hegseth. He stated that the deal was concluded at no cost to American taxpayers. Trump has linked the arrangement to efforts to address domestic gasoline prices, which rose after supply disruptions through the Strait of Hormuz during the Iran conflict. He has also cited past Venezuelan nationalizations and seizures of US oil assets and platforms, which he said cost the United States billions of dollars.

Venezuela holds the world's largest proven oil reserves, estimated at 303 billion barrels. Production has fallen sharply from its late-1990s peak, partly due to tighter state controls over the national oil company and US sanctions. The new agreement follows the US capture of Maduro and his wife on drug charges. Rodríguez said the deal would help revive the economy and increase government revenue.

Analysts have raised questions about implementation. David Goldwyn of Goldwyn Global Strategies told Reuters there is no precedent for the US government entering a lease to operate Venezuelan oil fields and that it remains unclear whether the arrangement complies with Venezuela's constitution or hydrocarbons law. He cited political uncertainty, a weak power grid, and limited export capacity as factors that could limit investment scale.

Oil and gas lawyer Alexander Kuiper told the BBC the deal could prove significant but noted uncertainty over whether reserves would translate into actual investment and production timelines. Rachel Ziemba of the Center for New American Security said the agreement might support job growth and imports in Venezuela, though details remain insufficient to assess near-term effects on global supplies. She stated any material impact on global oil markets is unlikely within the next year.

Venezuelan opposition lawmaker Henrique Capriles said the agreement requires clarification on its constitutional basis and the benefits to the Venezuelan public, citing concerns over government opacity. The official text of the agreement has not been released, and it is not yet known whether the arrangement will face legal or constitutional challenges in Venezuela.

US energy companies Chevron and Halliburton have been reported as nearing separate investment agreements to upgrade Venezuelan oil infrastructure. Trump has called on US firms to invest at least $100 billion to restore the sector. Venezuela's reserves consist primarily of heavy sour crude suited for diesel and asphalt, while the United States produces lighter sweet crude typically used for gasoline.

The agreement grants the US a controlling stake in the joint venture but leaves open questions about long-term operational control and revenue distribution. Both governments have presented the deal as advancing their respective economic and energy objectives.