Trump announces huge US stake in Venezuela’s vast oil reserves

President Donald Trump on Friday announced what he called the “biggest oil deal in world history,” saying the United States had secured majority control of Venezuela’s 65 billion barrels of proven oil reserves in an agreement expected to attract nearly $100 billion in private investment.

US and Venezuelan officials described the agreement as a major economic partnership that would boost oil production and help rebuild Venezuela’s battered economy. Interim Venezuelan leader Delcy Rodriguez called it a “historic agreement,” saying it could bring more than $100 billion in investment and over $209 billion in tax revenue to the state.

Trump said Secretary of State Marco Rubio and Defense Secretary Pete Hegseth negotiated the deal with Rodriguez through a partnership involving private companies. He said the agreement would more than double US oil reserves and strengthen ties between Washington and Caracas.

Rubio said the deal would secure stable, low-cost oil supplies in the Western Hemisphere, lower US gasoline prices and create thousands of jobs while supporting Venezuela’s economic reconstruction.

However, energy experts said major questions remained about how ownership and control of Venezuela’s oil assets would be transferred. Jorge Pinon of the University of Texas at Austin called the arrangement unconventional, questioning whether the deal involved a sale, a transfer of title or ownership contingent on future production.

The announcement follows reports that Washington and Caracas had been negotiating over a dozen oil fields containing tens of billions of barrels of proven reserves. US companies are expected to play a key role in developing the fields in exchange for an ownership stake, while Venezuela would receive a greater share of oil revenues.

The agreement comes as Trump faces political pressure over high gasoline prices and disruptions to global oil supplies following the US war with Iran. His administration has been pushing American companies to invest in Venezuela, despite concerns over poor infrastructure and the country’s history of nationalising foreign-owned assets.

Chevron, the only major US oil company still operating in Venezuela when former president Nicolas Maduro was ousted in January, has increased its crude production to about 280,000 barrels per day and plans to raise output further.

Energy analyst John Kilduff said the key challenge for US companies remains protecting their investments. If Washington gains control of the oil fields, he said, it could create a protected environment for American companies and reduce the political risks associated with operating in Venezuela.