The United States of America President, Donald Trump has announced a plan that would give the United States majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through partnerships with private companies.
He said the arrangement, which he described as involving no cost to U.S. taxpayers, would help revive Venezuela’s struggling oil industry and increase crude supplies to U.S. refineries, potentially easing pressure on fuel 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,” President Trump wrote on Truth Social.
Venezuela has the world’s largest proven oil reserves but currently produces about 1.25 million barrels per day, well below its potential after years of underinvestment, mismanagement and U.S. sanctions.
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Venezuelan interim leader Delcy Rodriguez welcomed the agreement, saying it would increase production, attract investment and generate additional government revenue.
She said the plan involved the development of 17 strategic oil fields and could generate 209 billion dollars in tax revenue.
“These investments will contribute not only to the recovery and modernization of our industry, but also to our country’s economic growth, the energy security of our hemisphere, and greater balance in international markets,” Rodriguez said.
U.S. Secretary of State Marco Rubio described the agreement as beneficial to both countries, saying it could secure stable, low-cost oil supplies for the United States while supporting investment and job creation in Venezuela.
He said the plan could attract nearly 100 billion dollars in private investment.
However, key details of the arrangement remain unclear, including the fields or companies involved, the legal structure of the deal and how the United States would exercise majority control over the reserves.
Venezuelan officials are reportedly preparing to sign new oil exploration and production agreements, with U.S. companies expected to play a significant role.
A lease model has reportedly been considered, although such an arrangement could face legal and constitutional challenges because the Venezuelan state retains control over key aspects of its oil industry.
Analysts also cautioned that the agreement might not immediately reduce U.S. gasoline prices, as Venezuela’s heavy crude requires significant infrastructure for production, transportation and refining, which could take years to develop.
David Goldwyn, president of Goldwyn Global Strategies, questioned the legal basis and investment prospects of the proposed arrangement.
“It is hard to see how this kind of arrangement would accelerate investment at any material scale,” he said, citing political uncertainty, an inadequate power grid, limited export capacity and government control over the industry.
The agreement comes as Washington seeks to secure Venezuelan crude for U.S. refineries and encourage American investment in Venezuela’s energy sector.
The Trump administration is also facing pressure over gasoline prices ahead of the U.S. midterm elections in November.
Venezuela nationalised its oil industry in the 1970s, placing state-owned PDVSA at the centre of the sector.
Under former President Hugo Chavez, state control was strengthened, while foreign-owned assets were taken over in several cases. Production later fell sharply during the administration of Nicolas Maduro.
Reuters
