Trump announces new US oil deal giving Washington majority control of Venezuelan reserves
text_fields
US President Donald Trump on Friday announced a new oil agreement with Venezuela's interim president Delcy Rodríguez, saying the United States would gain "majority" control of more than 65 billion barrels of Venezuela's proven oil reserves.
Trump said the agreement had been brokered through a partnership with private businesses by Secretary of State Marco Rubio and Defence Secretary Pete Hegseth. He provided few details about the structure of the agreement, the oilfields or companies involved, or how the United States would exercise control over the reserves.
Trump said the deal came at no cost to American taxpayers and would more than double US oil reserves. Rubio described it as "a huge win for both the American and Venezuelan people".
Venezuela has the world's largest proven oil reserves, estimated at about 303 billion barrels. The country currently produces around 1.25 million barrels of crude a day.
Since the US abducted Venezuelan President Nicolás Maduro and removed him from power in January, Washington has sought to secure Venezuelan crude supplies for US refineries while encouraging American investment in the country's struggling energy sector.
The announcement comes as the Trump administration faces pressure over rising gasoline prices ahead of November's midterm elections. Greater Venezuelan oil supplies and increased production could help ease prices. Washington is also seeking ways to replenish the Strategic Petroleum Reserve.
The Wall Street Journal reported earlier this week that the US was in advanced talks to take direct stakes in more than a dozen Venezuelan oilfields containing nearly one-third of the country's reserves. Axios also reported on the negotiations, citing a US official who described the potential deal as "massive".
The reports triggered criticism among Venezuelan opposition figures, some of whom accused Washington of pursuing a "land grab" rather than political change following Maduro's removal.
Chevron and other US energy companies are expected to sign agreements next week involving billions of dollars of investment in Venezuelan oilfields, according to the Wall Street Journal.