The United States and Venezuela announced a landmark oil agreement on Friday, granting the U.S. majority control over more than 65 billion barrels of Venezuela’s proven oil reserves. The deal is structured through partnerships with private companies and marks a major shift in bilateral energy cooperation.
‘Largest in Global History’
Former U.S. President Donald Trump hailed the agreement on Truth Social as “the largest in world history,” claiming it effectively “more than doubles” America’s oil reserves. According to Reuters, Trump said the accord was reached in coordination with Venezuela’s acting president, Delcy Rodríguez, and involves joint ventures with private-sector firms.
Venezuela confirmed the agreement, with Rodríguez stating it will play a pivotal role in the country’s economic recovery and the revitalization of its long-struggling oil industry — once the backbone of its economy but severely degraded by years of sanctions, mismanagement, and underinvestment.
17 Strategic Fields, 100-Year Development Rights
Under the terms outlined by Caracas, the agreement covers the development of 17 strategic oil fields with combined proven potential of up to 65 billion barrels. A senior U.S. official speaking to the Associated Press revealed that the deal establishes a new private company jointly owned by U.S. interests and a Venezuelan private operator. This entity will manage exploration, production, and infrastructure development across the designated fields.
The U.S. secures rights equivalent to 55% of the new company’s output — including priority purchase rights at cost — while Venezuela’s interim government has granted the venture development rights for a full century. Much of the oil produced is expected to replenish the U.S. Strategic Petroleum Reserve and support military fuel needs.
Economic Impact and Energy Security
Bloomberg, citing U.S. Secretary of State Marco Rubio, reports the deal is projected to attract over $100 billion in foreign direct investment into Venezuela and generate more than $209 billion in state tax revenue over time.
The agreement arrives amid rising U.S. fuel prices and growing strain on global energy markets — pressures intensified by escalating tensions with Iran and disruptions to international oil flows. Trump asserted the deal would deliver both immediate and long-term relief at the pump for American consumers and emphasized that it “will cost taxpayers nothing.”
Venezuela holds the world’s largest proven oil reserves — estimated at approximately 303 billion barrels — though only a fraction has been reliably produced in recent years due to systemic challenges. This accord signals a significant recalibration in how those resources may be accessed and leveraged internationally.