Trump announces US-Venezuela oil deal giving 55% control of joint venture
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US President Donald Trump announced a comprehensive oil agreement with Venezuela covering a major portion of the country's oil reserves. The deal includes development of 17 strategic oil fields with proven potential exceeding 65 billion barrels. Venezuelan interim President Delcy Rodriguez confirmed the agreement, saying it envisages over $100 billion in private investment.
Key Facts
- The agreement covers 17 strategic oil fields in Venezuela with total proven potential exceeding 65 billion barrels.
- The US will hold 55% control in a private-sector joint venture operating in Venezuela, according to a US official.
- Venezuela granted the joint venture a 100-year concession to operate the oil fields.
- The deal is expected to generate over $209 billion in tax revenue for the Venezuelan state, according to interim President Delcy Rodriguez.
- Venezuela holds the world's largest proven oil reserves at approximately 303 billion barrels.
Deal Structure
The agreement establishes a private-sector partnership in which the US will hold 55% control, according to a US official cited by US media. Venezuela granted the joint venture a 100-year concession to operate the oil fields. Trump said the deal is implemented through a private-sector partnership and will not cost US taxpayers. The specific companies involved and the scope of US control over the oil fields have not yet been detailed.
Investment and Revenue
Venezuelan interim President Delcy Rodriguez said the agreement envisages more than $100 billion in private-sector investment. Rodriguez stated the deal could provide the Venezuelan state with over $209 billion in tax revenue. US Secretary of State Marco Rubio said approximately $100 billion in private investment will be made in Venezuela, creating thousands of jobs. Trump previously asked US oil companies to invest at least $100 billion to revive Venezuela's oil sector.
Venezuela's Oil Context
Venezuela holds the world's largest proven oil reserves at approximately 303 billion barrels. The country's oil production has declined sharply since its late-1990s peak due to underinvestment, infrastructure problems, and prolonged economic crisis. US Defense Secretary Pete Hegseth was reported to have played a role in negotiations with the Venezuelan administration. How the agreement will be implemented with respect to Venezuela's sovereignty over its natural resources remains unclear.
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Trump announces US-Venezuela oil deal giving 55% control of joint venture
