US federal government to control 55% of new Venezuelan oil venture holding 65 billion barrels

August 29, 2026 at 10:31 PM2 min

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The Trump administration has secured a 55% controlling stake in a new Venezuelan oil joint venture holding 65 billion barrels of proven reserves. The deal grants the U.S. federal government effective control over the world's second-largest corporate oil reserve holder after Saudi Aramco. The venture is expected to attract over $100 billion in investment and generate $209 billion for Venezuela's government.

Key Facts

The U.S. federal government will control 55% of the new joint venture's effective output via equity ownership and oil production.
Venezuela's interim president Delcy Rodriguez granted a private company a 100-year lease for prime oil fields.
The deal covers 65 billion barrels of Venezuelan oil reserves, exceeding the U.S. proven reserve total of 46 billion barrels.
Venezuela's current oil production stands at 1.1 million barrels per day, down from a peak of 3.5 million barrels per day more than 20 years ago.
The U.S. Strategic Petroleum Reserve has fallen to 289.7 million barrels, its lowest level since November 1982.

Deal Structure

The federal government will control 55% of the company's effective output via equity ownership and oil production, with a private Venezuelan operator holding the remaining share. The U.S. official said the company will be the world's second-largest corporate holder of proven reserves after Saudi Aramco. Venezuela's interim president Delcy Rodriguez granted a private company a 100-year lease for prime oil fields. Rodriguez said the deal will bring in more than $100 billion of investment and generate $209 billion for Venezuela's government.

Strategic Petroleum Reserve

The U.S. Strategic Petroleum Reserve has fallen to 289.7 million barrels, its lowest level since November 1982. The U.S. official told reporters that as the U.S.-Venezuelan company ramps up oil production, its output will help restock the SPR. Venezuela's oil sector has been in disrepair for decades, and production is now only 1.1 million barrels a day, down from a peak of 3.5 million barrels more than 20 years ago. Boosting the country's output to those levels again would require billions of dollars in investment and years before they reach fruition.