Trump Announces Historic $65B-Barrel Venezuela Oil Deal

Shibbir Ahmed, WASHINGTON DC — U.S. President Donald Trump has announced what he called the “biggest oil deal in world history,” saying the United States has secured majority control of more than 65 billion barrels of proven Venezuelan oil reserves through partnerships with private businesses. The agreement places Venezuela’s vast oil resources at the center of a new U.S.-Venezuela energy relationship and could reshape the global oil market.

Trump said Secretary of State Marco Rubio and Secretary of War Pete Hegseth worked with Venezuelan interim President Delcy Rodríguez to finalize the agreement. Trump also said the arrangement would come at no cost to American taxpayers. The agreement reportedly covers the development of 17 strategic Venezuelan oil fields with a proven potential of about 65 billion barrels. The plan also includes expansion into eight additional oil blocks.

25-Year Energy Agreement

Rodríguez said Sunday that the broader energy agreement will remain in effect for 25 years and is designed to significantly increase Venezuela’s oil production. The initial target is approximately 1.5 million barrels per day, compared with current production of around 1.25 million barrels per day. Venezuela holds the world’s largest proven oil reserves but has struggled for years with declining production, damaged infrastructure and sanctions.

Rodríguez said Venezuela would retain sovereignty over its natural resources while using the agreement to attract investment and rebuild its oil industry. She estimated that the agreement could generate approximately $209 billion in revenue for the Venezuelan government, based on an assumed oil price of $65 a barrel.

What Does the U.S. Actually Control?

Despite Trump’s description of the agreement, the 65 billion barrels should not be interpreted as the United States simply acquiring 65 billion barrels of oil. The agreement concerns control and development rights over oil reserves through public-private partnerships. Reuters reported that Trump provided few details when he first announced the agreement, saying the U.S. had secured majority control of more than 65 billion barrels of proven Venezuelan reserves through a partnership with private business.

Other reports indicate that the structure could give a U.S.-linked joint venture a majority share of production from the fields, while Venezuela continues to assert ownership and sovereignty over its natural resources. The precise financial and legal structure of the agreement remains an important issue as additional details emerge.

Billions of Dollars in Investment

Reviving Venezuela’s oil sector will require substantial investment. Much of the country’s energy infrastructure has deteriorated after years of underinvestment, economic turmoil and sanctions. The agreement is expected to bring major American private-sector involvement into Venezuela’s oil industry, with companies including Chevron positioned to participate in the new framework.

For Washington, the deal could provide greater access to one of the world’s largest petroleum reserves while potentially increasing global oil supplies. For Caracas, the agreement represents an opportunity to rebuild its energy industry, increase production and generate badly needed government revenue.

Global Energy Implications

The scale of the agreement makes it significant well beyond Venezuela and the United States. A sustained increase in Venezuelan production could add substantial heavy crude supplies to international markets and strengthen the country’s position as a major global energy producer. The deal could also deepen U.S. influence over Venezuela’s economy and energy sector, raising questions about sovereignty, investment, environmental concerns and the future balance of power in Latin America’s oil industry.

For now, the agreement represents one of the most consequential developments in the global oil market in years — and its ultimate impact will depend on how quickly Venezuela’s damaged infrastructure can be rebuilt and production expanded.