US-Venezuela 25-Year Oil Pact Targets 1.5 Million Barrels Daily

President Trump said Friday that a new arrangement gives the United States majority control over more than 60 billion barrels of proven Venezuelan oil reserves, executed through a private joint venture at no direct cost to American taxpayers. The announcement follows a US military operation earlier this year that removed the prior Venezuelan government and installed an interim administration led by Delcy Rodriguez.

A US official familiar with the terms described the concession as a 100-year grant covering oil fields containing 65 billion barrels of petroleum. The venture combines US government participation with an experienced private operator, a structure designed to draw energy companies back into the country after years of sanctions and political upheaval. Trump posted on social media that the partnership was reached without taxpayer funds, framing it as an investment opportunity for private capital under government coordination.

Venezuela holds the world's largest proven crude reserves, estimated at roughly 300 billion barrels. The fields involved represent about one-fifth of that total. Production has collapsed in recent years due to underinvestment, infrastructure decay, and restrictions on international financing. The new concession aims to restart output by offering long-term operating rights that private firms can use to secure financing and technology.

The arrangement reflects the administration's preference for channeling post-conflict reconstruction through public-private vehicles rather than direct government spending or large-scale aid programs. Officials have indicated that similar models could apply to other sectors once basic security and legal frameworks are restored. Rodriguez's interim government granted the concession, providing the legal foundation for the joint venture to begin site assessments and contract negotiations with service companies.

Energy analysts note that reviving Venezuelan output at scale would require hundreds of billions in capital for drilling, pipelines, and refining capacity. The 100-year term is intended to give investors certainty that returns can be recovered over decades, a timeline typical for large upstream projects. Whether major oil companies commit capital will depend on the security environment, clarity on revenue sharing, and the absence of renewed sanctions that could disrupt exports.

The deal also carries implications for global oil markets. Additional supply from Venezuela could exert downward pressure on prices if it reaches several million barrels per day within the next decade. At the same time, US influence over a significant share of those reserves offers strategic leverage in energy diplomacy, particularly with respect to OPEC+ decisions and competition with other major producers.

Questions remain about oversight of the joint venture, the distribution of profits between the US government stake and private partners, and the timeline for actual production increases. The administration has not released detailed financial terms or the identity of the private operator. Congressional committees are expected to request briefings on the structure once more documentation becomes available.

For now, the announcement marks the latest step in efforts to normalize Venezuela's oil sector under the post-intervention government. The focus on private-sector execution aligns with the administration's broader approach to foreign engagements that seek to minimize direct fiscal outlays while advancing US commercial interests.