US President Donald Trump announced on Friday an unprecedented move—the intention to take control of one-fifth of Venezuela's vast oil reserves. He believes that American companies can revive the country's ailing energy sector, OPEC, and simultaneously lower domestic fuel prices.
Trump provided little detail, stating only that the US has secured a controlling stake in over 65 billion barrels of proven Venezuelan oil reserves through a partnership with private business, which will be done 'without any cost to American taxpayers.'
This agreement will significantly expand US involvement in Venezuela's oil industry, as the Trump administration aims to restore production and secure more crude oil for American refineries. Venezuela possesses the world's largest proven reserves, yet it produces only about 1.25 million barrels per day, far below its potential after many years of insufficient investment, inefficient management, and sanctions.
Trump stated on his social network Truth Social that 'Secretary of State Marco Rubio and Secretary of War Pete Hegset used close cooperation with the Highly Respected interim President of Venezuela, Dilcy Rodriguez, and, through a partnership with private business' to strike this deal. This announcement followed weeks of negotiations.
Venezuelan officials are preparing to sign agreements next week that will grant American firms new rights to explore and produce oil. Sources told Reuters that a lease model is being considered, whereby fields could be put up for auction to American producers; however, this arrangement may face legal and constitutional challenges in Venezuela, where the state retains control over core activities in the oil and gas industry.
Trump did not disclose the structure of the agreement, the participating fields or companies, or how the United States will exercise control over the reserves. A list seen by Reuters indicates that the fields are located in the Orinoco and Lake Maracaibo regions.
Rubio called the deal a victory for both countries, as it will provide the US with stable, low-cost oil, while bringing nearly $100 billion in private investment and thousands of high-paying jobs to Venezuela. Rodriguez, who became acting president after the US arrested President Nicolas Maduro in January, stated that the deal would increase production at 17 strategic fields and bring in $209 billion in tax revenue.
She emphasized: 'These investments will contribute not only to the recovery and modernization of our industry but also to the economic growth of our country, the energy security of our hemisphere, and a greater balance in international markets.'