The United States is set to gain control over more than 65 billion barrels of Venezuela’s proven oil reserves. President Donald Trump announced that the US has reached an agreement with the country regarding this matter. In a social media post, Trump described the deal as a “historic transaction.” He claimed that this would more than double US oil reserves, significantly boost the country’s oil supply, and substantially lower fuel prices for all American citizens. The BBC reported this news. Venezuela’s interim president, Delcy Rodríguez, also welcomed the agreement, stating that it would play a crucial role in reviving Venezuela’s economy. Trump had long promised to harness the oil wealth of Venezuela, which holds the world’s largest proven oil reserves. He became more active on this issue after the US moved to detain the country’s then-president, Nicolás Maduro, earlier this year. Meanwhile, Trump has also faced domestic pressure due to rising fuel prices in the US caused by the conflict with Iran.
US Secretary of State Marco Rubio hailed the deal as a massive victory for the people of both the US and Venezuela. However, specific details of the agreement have not been disclosed. Rubio wrote on social media that the deal would bring approximately $100 billion in private investment for the Venezuelan people, create thousands of high-paying jobs, and accelerate the reconstruction of Venezuela’s economy. Trump stated in his post that Rubio and Defense Secretary Pete Hegseth reached this agreement with Venezuelan leadership through a partnership with private businesses. However, Trump did not provide details regarding the nature of that partnership, the terms of the deal, or any potential US liabilities. He claimed that the agreement was concluded at no cost to US taxpayers.
In a statement, Venezuelan interim president Rodríguez said the deal would have a “significant impact” on her country’s “revitalization.” She noted that 17 strategic oil fields would be developed under the agreement. These oil fields hold the potential for the proven extraction of 6.5 billion barrels of oil. Furthermore, this initiative opens up opportunities for investments exceeding $100 billion and tax revenues for the state surpassing $209 billion. Rodriguez stated that these investments would not only assist in the recovery and modernization of Venezuela’s oil industry but also contribute to the country’s economic growth, the energy security of the entire region, and greater balance in international markets.
A US official informed CBS News that, under the agreement, the US government would retain 55 percent control of the joint venture with an experienced private operator in Venezuela. According to the official, Rodriguez has also granted this joint venture a 100-year permit to operate the oil fields. However, Trump has not disclosed many details regarding this unusual agreement. The deal appears to effectively grant the United States direct control over the sovereign national assets of a foreign country. The scope of this Venezuelan agreement seems even broader than the control exercised by the US-led Coalition Provisional Authority over Iraq’s oil revenues following the fall of Saddam Hussein in the 2003 US-led military campaign. However, it remains unclear whether the agreement will face legal and constitutional challenges within the South American nation. The full written text of the agreement concluded between Washington and Caracas has not been released either.
On January 3 of this year, President Maduro and his wife, Cilia Flores, were detained during a US special forces operation authorized by Trump. Hours after the operation, Trump stated that his administration would manage Venezuela until a “safe, proper, and prudent transfer of power” took place. At the same time, he announced that the United States would maintain control over the country’s oil sales indefinitely. Venezuela holds the world’s largest proven oil reserves, estimated at 303 billion barrels. However, the country’s oil production has plummeted significantly since peaking in the late 1990s. Trump has called upon US oil companies to invest at least $100 billion to revitalize Venezuela’s oil industry. Earlier, asserting U.S. rights over Venezuelan oil, he alleged that the country had in the past “unilaterally seized and sold American oil, American assets, and American platforms,” resulting in losses of “billions of dollars” for the United States.
