Trump says US reaches deal with Venezuela to control 65 billion barrels of country’s oil reserves

President Donald Trump said Friday night the United States has reached an oil agreement with Venezuela, a move he said will “more than double” American oil reserves, increase oil supply and lower gas prices.

“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 U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer,” Trump wrote on social media.

Trump’s emphasis on lowering American gas prices, almost two months before the US midterm elections, comes as the national average gas price sits at more than $4 a gallon.

The Iran war has disrupted a fifth of the world’s oil supply for six months, but it reached an inflection point in recent weeks: Billions of oil and fuel barrels in commercial stockpiles have vanished. US emergency reserves haven’t been this small since the early 1980s, with bond market investors and voters running out of patience with high prices.

“This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future, while helping to continue to set Venezuela on a course toward Tremendous Success and Great Prosperity,” Trump wrote in his post.

Rodríguez also touted the agreement between the two countries.

“Our goal is to move toward consolidating our position as an energy-producing power, putting our immense reserves at the service of national development, job creation, increased income for our workers, and the well-being of our people,” she said in a statement Friday night.

A White House official told CNN the negotiated deal will grant the United States “55% effective output of a new private joint venture that will be the second-largest private oil company by reserves in the world.”

With US support, the official said, Rodríguez granted a private company 100-year concessions for the oil fields. The official added the private company is a joint project of the US government and a private operator in Venezuela.

“The United States Government has secured more than half the value of this new oil giant, split between equity ownership and guaranteed at-cost off-take. As the company scales production, the resulting stable supply of at-cost oil in our Hemisphere will go toward filling the U.S. strategic petroleum reserve and fulfilling the supply needs of our Great U.S. Military,” the official said.

Rubio called the deal a “huge win for both the American and Venezuelan people.”

“For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela’s economy,” Rubio said shortly after Trump’s announcement.

At the start of the year, the United States captured Venezuela’s Nicolás Maduro in a large-scale military operation, bringing the leader and his wife to New York to face criminal charges. After the military operation, Trump said American companies would work to rebuild Venezuela’s oil industry.

In January, Venezuelan lawmakers approved a law change, backed by Rodríguez, to make it easier for foreign companies to take part in the country’s oil industry.

Venezuela has more proven oil reserves than any nation on the planet.

This story has been updated with additional details.

CNN’s Mauricio Torres contributed to this report.

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