US President Donald Trump says his administration has reached a major oil agreement with Venezuela that would give the United States majority control of 65 billion barrels of proven oil reserves.
Trump described the agreement as “the biggest oil deal in world history,” while US and Venezuelan officials said it could attract nearly $100 billion in private investment into Venezuela.
Venezuela holds the world’s largest proven oil reserves. The deal comes after months of intense pressure from the Trump administration and Washington’s push to secure greater access to Venezuelan crude.
Venezuela’s interim leader, Delcy Rodriguez, confirmed the agreement, describing it as a historic deal that could contribute significantly to rebuilding the country’s economy.
She said the arrangement could bring more than $100 billion in investment and generate about $209 billion in tax revenue for the Venezuelan government.
Trump said the agreement was reached by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth in partnership with private businesses.
“This Transaction will greatly strengthen the already growing relationship between Venezuela and the United States!” Trump said.
Rubio said the agreement would help secure stable and lower-cost oil supplies for the United States while supporting economic reconstruction and job creation in Venezuela.
However, energy experts say several questions remain unanswered, particularly regarding how ownership or control of the oil reserves would be transferred to the United States.
Jorge Pinon of the Energy Institute at the University of Texas said it was unclear whether the arrangement would involve an outright sale, a transfer of title or control that would only take effect once the oil is produced.
The deal reportedly involves several major Venezuelan oil fields that could be developed by private companies, including US firms, with a portion of the resulting oil revenues returning to Venezuela.
Trump has repeatedly pushed for greater US access to Venezuelan oil as Americans continue to face concerns over fuel prices and global energy disruptions.
US energy companies, however, remain cautious about investing in Venezuela because of its ageing infrastructure and concerns over the security of foreign investments.
Chevron, the only major US oil company still operating in Venezuela when former president Nicolas Maduro was removed, has continued increasing its crude production in the country.
Energy expert John Kilduff said the biggest challenge for companies would remain protecting their investments from political and security risks.
Source: AFP.
