President Donald Trump announced on Friday that the United States has secured majority control over more than 60 billion barrels of proven Venezuelan oil reserves. The agreement, described as a partnership with private business, aims to bring U.S. oil companies back into Venezuela following a recent military operation that replaced the country's leadership earlier this year. In a post on Truth Social, Trump stated the deal was made "at no cost to the American Taxpayer" and would significantly increase America’s oil supply.
Details of the Joint Venture
A U.S. official told CBS News that interim Venezuelan President Delcy Rodriguez granted a private joint venture a 100-year concession to operate in oil fields containing approximately 65 billion barrels of petroleum. The venture is described as a "joint project" between the U.S. government and an experienced private operator. According to the official, the U.S. government will control 55% of this entity through equity stakes and the ability to obtain oil at cost.
The administration claims this move makes the joint venture the world's second-largest corporate owner of proven oil reserves, trailing only Saudi Aramco. While specific private companies involved were not named in the initial announcement, few foreign firms have maintained a presence in Venezuela recently. U.S.-based Chevron, Spain-based Repsol, and Italy-based Eni are among the handful that remained.
Economic Impact and Political Context
Secretary of State Marco Rubio stated on social media that the deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela's economy. Rodriguez confirmed the agreement on X, calling it a "historic agreement" with significant impact for national revival. She estimated the venture would generate over $209 billion in tax revenue for the Venezuelan government, a story we covered in Trump Announces U.S..
This development follows January events where U.S. military forces captured Nicolás Maduro, leading to Vice President Rodriguez assuming power. The Trump administration has since encouraged American companies to reenter Venezuela, easing sanctions and supporting legislation allowing private management of oil extraction. However, major firms like ExxonMobil have expressed hesitation due to past nationalizations under former President Hugo Chávez.
