Washington | 28 Aug 2026
US President Donald Trump announced a US-Venezuela oil deal on Friday that he said would give the United States majority control over more than 65 billion barrels of Venezuela’s proven reserves. However, the agreement’s legal structure, participating companies and implementation timetable have not been publicly disclosed.
US-Venezuela oil deal covers 17 fields
Trump said Secretary of State Marco Rubio and Defence Secretary Pete Hegseth negotiated the agreement with Venezuela’s interim President Delcy Rodríguez and private businesses. He claimed the arrangement would impose no cost on American taxpayers.
“The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!”
— Donald Trump, US President
Rodríguez’s government said the agreement covered the development of 17 strategic oilfields with proven potential of 65 billion barrels. An unnamed US official told the Associated Press that the plan envisaged a new company involving the United States and a private operator, with the US receiving 55 per cent of its effective output through ownership and rights to purchase crude at cost.
The official said the company would receive 100-year development rights. Neither government had published the full agreement or identified the private operator by Saturday.
Venezuela projects $100 billion in private investment
The Venezuelan government said the agreement could attract nearly $100 billion in private investment and generate more than $209 billion in tax revenue. Rodríguez said it would help modernise the country’s oil industry, increase production and support economic growth.
Rubio said the arrangement would provide the United States with stable, lower-cost oil while creating jobs and investment in Venezuela. Oil purchased through the proposed company could also be used for the US Strategic Petroleum Reserve and military requirements, according to the US official cited by the Associated Press.
Legal and infrastructure questions remain unresolved
Venezuela holds an estimated 303 billion barrels of crude reserves, among the largest proven holdings globally, but produces about 1.25 million barrels per day after years of underinvestment, sanctions and deteriorating infrastructure.
Energy analysts cautioned that Venezuela’s constitutional and petroleum laws could complicate any arrangement giving a foreign government operational control over oilfields. Trump did not explain how majority control would be exercised or whether the agreement required further legislative or regulatory approval.
A rapid reduction in US fuel prices is also uncertain. Venezuela’s heavy crude requires specialised production, transport and refining infrastructure, and a substantial increase in output could take years and require significant capital.
The announcement expands an energy arrangement introduced in January, when Washington began facilitating sales of Venezuelan crude and selectively easing sanctions covering trade and transportation. Existing sanctions on crude production were not fully removed under that earlier authorisation.
