US and Venezuela strike deal for control over 65bn barrels of oil reserves
Donald Trump has announced a deal giving the US control over more than 65 billion barrels of Venezuela's proven oil reserves. Venezuela's interim president called it a boost for the country's economic recovery, though some analysts remain sceptical.
US President Donald Trump has announced an agreement with Venezuela granting the United States control over more than 65 billion barrels of the country's proven oil reserves. Trump said the deal would more than double America's oil reserves and substantially lower petrol prices for US consumers.
Venezuela's interim President Delcy Rodríguez, who took office after former President Nicolás Maduro was captured by US forces in January, described the agreement as a major step toward the nation's economic revival. According to her statement, the deal covers development of 17 strategic oil fields, more than $100bn in investment, and over $209bn in tax revenue for Venezuela.
Secretary of State Marco Rubio called the agreement a huge win for both countries, saying it would create thousands of high-paying jobs and drive the reconstruction of Venezuela's economy. Few details have been released, but a US official told CBS News that Washington would retain 55% control of a joint venture with an experienced private operator, under a concession reportedly lasting 100 years.
Analysts voice caution
Energy experts have responded with scepticism. David Goldwyn of Goldwyn Global Strategies said there was no precedent for the US government leasing and operating oil fields in another sovereign country, and it remains unclear whether the arrangement would conflict with Venezuela's constitution or hydrocarbons law. He also pointed to political instability, a weak power grid and limited export capacity as obstacles to meaningful investment.
Oil and gas lawyer Alexander Kuiper said the deal could prove significant but cautioned that it is unclear whether or how quickly the reserves would translate into actual investment and results.
Venezuela holds the world's largest proven oil reserves, estimated at 303 billion barrels, though output has fallen sharply since the late 1990s amid US sanctions and tighter state control over its oil industry. Trump's push to tap these reserves comes as global oil prices have surged due to the Iran war and disruption near the Strait of Hormuz, adding pressure ahead of the US midterm elections in November.
