President Trump announced Friday that the United States has reached a sweeping oil agreement with Venezuela that he says will give the U.S. majority control over more than 65 billion barrels of proven Venezuelan oil reserves, bring massive private investment to the country and help push down gasoline prices for Americans.
In a social media post announcing the agreement, Trump called it “THE BIGGEST OIL DEAL IN WORLD HISTORY” and said the arrangement would place a majority stake in more than 65 billion barrels of Venezuela’s proven reserves under U.S. control.
Trump said the enormous new source of oil would serve American energy interests for decades and “substantially lower” gas prices for Americans “long into the future.”
The announcement comes as Americans have faced sharply rising oil and gasoline prices amid the war with Iran, which reached the six-month mark on Friday.
“At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer,” Trump said in the post.
An American official familiar with the agreement told ABC News that the U.S. will hold a 55% share in a joint venture involving a private Venezuelan company. That stake will be divided between equity ownership and oil production.
The arrangement creates the “second-largest private oil company by reserves in the world,” the official added.
Under the agreement, Venezuelan interim President Delcy Rodriguez granted the private company a 100-year lease covering oil fields containing an estimated 65 billion barrels of proven reserves, according to the U.S. official.
Rodriguez welcomed the agreement in an English-language statement posted on social media, saying it would “have a significant impact on our nation’s revival.”
The American official said oil produced by the company and supplied at cost will be used in part to replenish the U.S. Strategic Petroleum Reserve. The arrangement is also expected to provide oil for use by the U.S. military.
According to the official, negotiations leading to the agreement were conducted by the State Department and Defense Department.
The deal comes after years of severe economic turmoil in Venezuela. The country suffered another major blow in June, when two powerful earthquakes struck in quick succession, killing more than 6,000 people.
Rodriguez thanked Trump and Secretary of State Marco Rubio for their roles in securing the agreement, describing the pact as a “historic milestone” in the relationship between Washington and Caracas.
“The agreement will allow for a significant increase in oil production with the participation of private operators,” Rodriguez said in the statement, saying the deal calls for the development of 17 strategic fields, with a proven potential of 65 billion barrels of oil, and an investment of more than $100 billion, and more than $209 billion in tax revenue.
“Venezuela is thus ushering in a new era of recovery, growth, production, security, and prosperity for our people,” she said in the post.
Venezuela possesses the world’s largest recognized proven oil reserves, although years of economic deterioration and underinvestment have severely hampered its ability to fully exploit those resources.
Chevron, currently the only American oil company operating in Venezuela, declined to comment on Trump’s announcement.
Trump said the massive energy agreement would also “greatly strengthen” relations between Washington and Caracas, marking a dramatic shift in the relationship between the two countries.
That relationship was transformed in January, when the United States conducted a military operation in Venezuela that resulted in the capture of then-President Nicolas Maduro and his wife. The two were brought to the United States to face federal charges that include narco-terrorism and drug trafficking.
Maduro and his wife have pleaded not guilty to the charges. Their trial is scheduled to take place in New York City in 2027.
Rubio also celebrated the new energy agreement in a social media post, calling it a “huge win” for both countries.
“It demonstrates how President Trump’s bold foreign policy is driving America First wins: securing stable reserves and low-cost oil in our Hemisphere and lowering gas prices here at home,” Rubio said in the post. “For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela’s economy.”
{Matzav.com}
