The United States has announced an agreement granting it substantial control over Venezuela’s oil resources. President Trump characterized the arrangement as historic, asserting it more than doubles American oil reserves and will reduce gasoline prices domestically. Venezuela’s interim President Delcy Rodriguez described the accord as beneficial for her nation’s economic recovery.
The deal emerged following the US capture of former Venezuelan President Nicolás Maduro earlier in the year. Trump administration officials, including Secretary of State Marco Rubio and Defence Secretary Pete Hegseth, negotiated the arrangement with Venezuelan leadership in partnership with private business entities. The agreement calls for developing 17 strategic oil fields containing approximately 65 billion barrels of proven reserves. According to Venezuela’s interim president, the arrangement involves private investment exceeding $100 billion, with over $209 billion designated for state revenues, along with a 100-year operational concession.
Under the terms disclosed, the US government will hold 55% control of a joint venture operated by an experienced private company, according to a US official. The structure grants the American government direct oversight of a significant portion of Venezuela’s sovereign oil resources, an arrangement described as unusual in scope. The full text of the agreement has not been publicly released, and it remains unclear whether it will face legal or constitutional challenges within Venezuela.
Venezuela possesses the world’s largest proven oil reserves, estimated at 303 billion barrels, though production has declined substantially from its peak in the late 1990s. Trump has called on US oil companies to invest at least $100 billion in restoring Venezuela’s oil production capacity. The administration has also referenced historical grievances, claiming Venezuela had previously seized American oil assets and platforms at significant cost.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI