President Donald Trump announced an unprecedented agreement securing majority US control over more than 65 billion barrels of Venezuela’s proven crude oil reserves.
Historic announcement
Taking to social media, Trump hailed the arrangement as “the biggest oil deal in world history.” He noted that under his direction, top officials negotiated “through a partnership with private business” to secure majority control over the reserves.
Terms of the deal
The agreement establishes a joint venture granting 100-year concessions across 17 strategic oil fields in Venezuela.
A White House official confirmed the arrangement gives the US an effective 55% share of total output, noting that “the United States Government has secured more than half the value of this new oil giant, split between equity ownership and guaranteed at-cost off-take.” The deal was finalized “at no cost to the American taxpayer.”
Economic impact
Trump claimed the transaction will “more than double American oil reserves, greatly increase our oil supply and substantially lower gas prices for all Americans.”
Meanwhile, Venezuelan interim President Delcy Rodriguez praised the partnership, stating it will draw over $100 billion in private investment and generate $209 billion in tax revenue.
She added, “Venezuela is thus ushering in a new era of recovery, growth, production, security and prosperity for our people.”
Global energy context
The move comes as global energy markets face severe disruptions due to ongoing conflict in the Middle East. US officials state the newly acquired crude will help replenish the US Strategic Petroleum Reserve and fulfill military fuel needs.
