U.S. President Donald Trump has announced what he described as a historic oil agreement with Venezuela that would give American interests majority control over more than 65 billion barrels of the country’s proven oil reserves.
Trump announced the deal on Friday, August 28, saying it was negotiated by U.S. Secretary of State Marco Rubio and Secretary of War Pete Hegseth in cooperation with Venezuela’s interim President Delcy Rodríguez.
The agreement is expected to involve the development of 17 Venezuelan oil fields with substantial proven reserves.
According to reporting by Reuters and The Associated Press, the proposed arrangement would involve a new private joint venture, with the United States securing a 55% operational share. The deal is expected to attract tens of billions of dollars in investment into Venezuela’s oil industry.
Trump presented the agreement as a major victory for both countries, arguing that increased Venezuelan production would strengthen America’s energy supply and potentially help reduce gasoline prices.
Venezuela possesses the world’s largest proven crude oil reserves, but years of underinvestment, sanctions, mismanagement and deteriorating infrastructure have left its production far below its potential.
Venezuelan authorities have also welcomed the agreement, saying it could generate significant investment and government revenue.
However, questions remain over the legal and constitutional framework surrounding the arrangement.
Reuters reported that Venezuela’s constitution and hydrocarbons laws traditionally give the state a central role in the country’s oil industry, potentially creating legal complications for the proposed structure.
The agreement is therefore likely to attract further scrutiny as negotiations over implementation and the allocation of oil production rights continue.