Trump Announces US Deal to Gain Control of Major Venezuelan Oil Reserves

President Donald Trump has announced a major US effort to gain control of a large part of Venezuela’s oil reserves, saying the move could help rebuild the country’s oil industry and provide more crude oil for US refineries.

Trump said the United States had secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through a partnership with private companies. He did not provide details about how the agreement would work.

Venezuela’s interim leader welcomed the deal, saying it would increase oil production, strengthen the economy and raise government revenue.

Venezuela has the world’s largest proven oil reserves, but its production remains far below its potential because of years of underinvestment, poor management and US sanctions.

Rubio calls deal a win-win

“At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority US control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer,” Trump wrote on Truth Social.

The announcement came after weeks of talks between the United States and Venezuela. The proposed agreement would give US companies long-term access to Venezuelan oilfields and provide crude oil to the United States.

Venezuelan officials are expected to sign agreements next week giving new exploration and production rights to several companies, especially US firms.

US Secretary of State Marco Rubio called the agreement a win for both countries. He said it would provide the United States with stable, low-cost oil and could help reduce gasoline prices.

For Venezuela, Rubio said the deal could bring nearly $100 billion in private investment, create thousands of well-paying jobs and help rebuild the economy.

Rodriguez said the agreement would increase production through the development of 17 strategic oilfields. She also said the deal could generate $209 billion in tax revenue for Venezuela.

“These investments will contribute not only to the recovery and modernisation of our industry, but also to our country’s economic growth, the energy security of our hemisphere, and greater balance in international markets,” she said.

Legal and financial details remain unclear

Analysts said more information is needed about the legal and financial structure of the agreement before its impact can be assessed.

It is also unclear whether the deal will reduce US gasoline prices quickly. Experts say rebuilding the infrastructure needed to produce, transport and refine Venezuela’s heavy crude could take years.

Analyst David Goldwyn said there was no clear precedent for the US government directly leasing and operating Venezuelan oilfields. He also questioned whether the agreement would solve long-standing problems that have discouraged investment.

These problems include political uncertainty, an unreliable power system, limited export capacity and government control over the oil industry.

Since the removal of former Venezuelan President Nicolas Maduro, Washington has been seeking a reliable supply of Venezuelan crude for US refineries while encouraging American investment in Venezuela’s energy sector.

The Trump administration is also facing pressure over rising gasoline prices ahead of the November midterm elections. Increased oil supplies could help ease some of that pressure.

The United States is also looking for ways to rebuild its Strategic Petroleum Reserve, including possible crude oil swaps with US producers.

Venezuela nationalised its oil industry in the 1970s and placed state-run PDVSA at the centre of the sector. Under former President Hugo Chavez, the government increased state control over foreign oil companies and later took over some assets operated by ExxonMobil and ConocoPhillips.

Under Maduro’s government, Venezuela’s oil production fell sharply.