Trump announces US deal for Venezuela oil

President Donald Trump announced that the United States has reached a deal with Venezuela to control more than 65 billion barrels of its proven oil reserves. The agreement was described by Trump as a historic transaction that would more than double American oil reserves, increase supply, and substantially lower gas prices for Americans.

Venezuela's interim President, Delcy Rodriguez, hailed the pact as one that would help her nation's economic revival. Secretary of State Marco Rubio called it a huge win for both the American and Venezuelan people, though few concrete details were released publicly.

Deal Structure and Claims

Trump stated on social media that Rubio and Defence Secretary Pete Hegseth reached the agreement with Venezuela's leadership through a partnership with private business. He claimed the deal was secured at no cost to the American taxpayer but did not elaborate on the partnership's terms or US commitments.

Rodriguez provided more specifics in a statement. She said the deal calls for the development of 17 strategic oil fields with a proven potential of 65 billion barrels. She also cited an investment of more than $100 billion and more than $209 billion in taxes for the Venezuelan state.

"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.

Control and Concession

A US official told the BBC's media partner CBS News that under the deal, the US government will retain 55% control of a joint venture with an experienced private operator in Venezuela. According to the same official, Rodriguez granted the venture a 100-year concession to operate in the oil fields.

The agreement appears highly unusual, granting the US direct governance over a foreign country's sovereign national resources. Its scope seems wider than the US-led Coalition Provisional Authority's control over Iraq's oil revenues after the 2003 invasion that ousted Saddam Hussein.

Legal and constitutional challenges in Venezuela are possible. The official text of the agreement between Washington and Caracas has not been released.

Background and Context

Trump vowed to tap Venezuela's reserves, the world's largest, after the US captured its then-President Nicolás Maduro on 3 January in a special forces operation he authorised. In the hours after that raid, Trump said his administration would run Venezuela until a safe transition could occur and would indefinitely control the sale of the country's oil.

Trump has also claimed rights to Venezuela's oil, citing past seizures of American assets. He has asked US oil firms to invest at least $100 billion to restore Venezuela's oil industry, where production has plummeted since its peak in the late 1990s despite the country's estimated 303 billion barrels of proven reserves.

Secretary of State Marco Rubio asserted on social media that the deal would bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive Venezuela's economic reconstruction for its people.