President Donald Trump announced a new agreement between Washington and Caracas, which effectively grants the United States controlling interest over over 65 billion barrels of Venezuela’s proven oil reserves. Trump stated that this transaction would double U.S. oil reserves, boost the global oil supply, and lead to noticeable reductions in consumer gasoline prices.
Interim President Delcy Rodríguez welcomed the deal as a significant contribution to her nation’s economic recovery. This move comes as President Trump faces pressure regarding rising fuel costs within the context of the Iran conflict. U.S. Secretary of State Marco Rubio called the arrangement “a major win for both the American and Venezuelan people.”
While initial details were limited, Rubio indicated that nearly $100 billion in investments would flow into Venezuela, creating thousands of new jobs. Trump further clarified that he, Rubio, and U.S. Defense Minister Pete Hegseth negotiated the deal alongside Venezuelan government officials and private companies, assuring that the U.S. taxpayer would incur no costs.
The specific agreement involves the development of 17 oil fields. Rodríguez highlighted that the investment volume is expected to exceed $100 billion, generating over $209 billion in state tax revenue. According to the Venezuelan side, these investments are slated to modernize the industry, fuel economic growth, and improve regional energy security.
A U.S. representative disclosed that Washington will hold a 55 percent stake in a joint venture with a private operator in Venezuela, granting the concession an operational period of over 100 years.
This approach is noted as highly unusual, as it allows the U.S. to directly influence the resources of a sovereign nation. Since the contract text has not been released, its legal and constitutional validity remains uncertain.
The context of this deal is rooted in past events; in early January, Venezuelan President Nicolas Maduro and his wife were abducted during a U.S. military operation. At that time, Trump had pledged that the U.S. would guide Venezuela toward a peaceful transition while controlling oil sales.
Venezuela holds the world’s largest oil reserves, totaling approximately 303 billion barrels, though production has steeply declined since the 1990s. Trump has since urged U.S. companies to commit to minimum investments of $100 billion to revitalize the industry.
