President Trump announced a deal with Venezuela's acting government to secure majority control over 65 billion barrels of proven oil reserves.

President Donald Trump announced on Friday that the United States has entered into an agreement with Venezuela to gain majority control over 65 billion barrels of the country's proven oil reserves. The deal, negotiated by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth alongside Venezuela's acting President Delcy Rodríguez, aims to revive Venezuela's oil industry and secure crude supplies for the U.S.

Terms of the Agreement

The agreement involves the development of 17 oil fields and grants a new private company, formed through a partnership with an unnamed private operator, 100-year rights to the reserves. According to a U.S. official, the arrangement provides the United States with a 55% effective output, including an ownership stake and the right to purchase oil at cost. Venezuela's government stated the deal could attract $100 billion in investment and generate over $209 billion in tax revenue for Caracas.

Context and Implementation

The announcement follows months of negotiations and comes as the Trump administration seeks to address domestic gas prices and increase crude supplies for U.S. refineries. While President Trump described the deal as a historic transaction that would double American oil reserves, the specific structure of the agreement and the identity of the private companies involved remain undisclosed. Venezuelan officials are reportedly preparing to sign formal agreements regarding exploration and production rights in the coming week.