President Donald Trump on Friday announced what he described as an unprecedented US push to secure majority control of more than 65 billion barrels of Venezuela’s proven oil reserves, as Washington seeks to revive the OPEC member’s battered energy industry and secure additional crude supplies for US refineries.
Trump provided few details about the arrangement, saying the US had secured majority control of the reserves through a partnership with private businesses.
Venezuela’s interim leader, Delcy Rodriguez, welcomed the agreement, saying it would boost production, economic growth and government revenue.
The announcement marks a major expansion of the US role in Venezuela’s oil industry as the Trump administration seeks greater access to the country’s vast crude resources.
Venezuela holds the world’s largest proven oil reserves but produces about 1.25 million barrels per day, well below its potential after years of underinvestment, mismanagement and 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 followed weeks of US-Venezuelan negotiations over an arrangement that would give American companies long-term access to a group of Venezuelan oilfields and guarantee supplies of crude to the United States.
Venezuelan officials are preparing to sign agreements next week granting new oil exploration and production rights to several companies, particularly US firms.
Sources have told Reuters that a lease model was under consideration, with fields potentially auctioned to US producers. However, such an arrangement could face legal and constitutional challenges in Venezuela, where the state retains control over core oil industry activities.
Trump did not disclose the structure of the agreement, the fields or companies involved, or how the US would exercise majority control over the reserves. A list seen by Reuters shows the fields are located in the Orinoco Belt and Lake Maracaibo regions.
Rubio described the agreement as a win for both countries, saying it would secure stable, low-cost oil for the US and help reduce petrol prices.
For Venezuela, Mr Rubio said the deal would bring nearly $100 billion in private investment, support thousands of high-paying jobs and help rebuild the economy.
Ms Rodriguez, who became interim leader after the US seized President Nicolas Maduro in January, said the agreement would allow a significant increase in production through the development of 17 strategic fields and generate $209 billion in tax revenue for the country.
“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 in a statement.
Legal basis, financial structure unclear
Analysts said they needed more details on the agreement’s legal and financial structure before determining whether it could attract significant investment.
It is also unclear whether the deal would lower petrol prices in the short term, as developing the infrastructure needed to produce, transport and refine Venezuela’s heavy crude could take years.
David Goldwyn, president of Goldwyn Global Strategies, said it was unclear whether a US government lease would have a legal basis under Venezuela’s Constitution and its new hydrocarbons law.
He said there was “no precedent for having the US government enter into a lease to operate oil fields”.
Mr Goldwyn also questioned whether the plan would address the obstacles that have deterred investment in Venezuela for years, citing political uncertainty, an inadequate power grid, limited export capacity and government discretion over the industry.
“It is hard to see how this kind of arrangement would accelerate investment at any material scale,” he said.
Since the removal of Mr Maduro, Washington has been seeking to secure a stable flow of Venezuelan crude for US refineries while promoting American investment in the country’s oil industry.
The Trump administration is also under pressure ahead of the November midterm elections to address consumer concerns over rising petrol prices. Cheaper oil supplies and increased production could help.
The US has also been seeking ways to replenish its Strategic Petroleum Reserve, including the possibility of crude swaps with domestic producers.
Venezuela nationalised its oil industry in the 1970s, putting state-run PDVSA at its centre. Under then-President Hugo Chavez, the government tightened control over the sector, forcing foreign producers into state-led joint ventures and later expropriating assets, including projects operated by ExxonMobil and ConocoPhillips.
