US President Donald Trump has announced what he described as the “biggest oil deal in world history”, saying the United States has secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves.
Mr Trump made the announcement on Friday, saying the agreement was negotiated by US Secretary of State Marco Rubio, Secretary of War Pete Hegseth and Venezuela’s interim President Delcy Rodríguez, alongside private-sector partners.
According to the US president, the arrangement will give American interests majority control of the reserves at no cost to US taxpayers. He said the deal would significantly increase America’s oil supply, more than double its reserves and help reduce petrol prices for American consumers.
The agreement reportedly covers the development of 17 Venezuelan oil fields and could attract about $100bn (£76bn) in private investment into the country’s struggling energy sector. The Venezuelan government has also projected more than $209bn in tax revenue from the deal.
US officials said the proposed arrangement would involve a new private company established through a partnership between American interests and an unnamed operator. The United States would reportedly hold an effective 55% share of the company’s output, including ownership rights and the ability to purchase oil at cost.
The announcement marks a major expansion of US involvement in Venezuela’s oil industry, which has suffered from years of declining production, ageing infrastructure and underinvestment.
Venezuela holds the world’s largest proven oil reserves, but much of its production capacity has deteriorated. The Trump administration has argued that increased American investment could revive the industry while creating a new source of crude for the US market.
Ms Rodríguez has welcomed the agreement, saying the investment could help revive Venezuela’s economy and generate substantial government revenue. However, questions remain over the legal framework of the arrangement and how the proposed US control will operate within Venezuela’s oil laws.
Analysts have also warned that restoring Venezuela’s oil production will take time because of damaged infrastructure, heavy crude extraction challenges and the country’s long-standing political and investment uncertainties.
The deal comes as Mr Trump faces pressure to bring down petrol prices in the United States and replenish depleted strategic oil reserves amid disruptions to global energy supplies.
If implemented as outlined, the agreement would give US interests unprecedented influence over a significant portion of Venezuela’s vast petroleum resources and could reshape the balance of power in the global oil market.
