Trump announces US–Venezuela oil agreement
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New York: US President Donald Trump has announced that the United States has reached an agreement with Venezuela on what he described as the “biggest oil deal in world history.”
In a post on Truth Social, Trump said the agreement gives the United States, through a partnership with private businesses, majority control over more than 65 billion barrels of Venezuela’s proven oil reserves, without any cost to 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!” Trump wrote.
He claimed that the deal would more than double US oil reserves, boost domestic supply and lead to a substantial reduction in gasoline prices for American consumers over the long term.
US oil prices have risen sharply since the Iran conflict began in late February, heightening concerns over inflation, Xinhua news agency reported.
Meanwhile, Venezuela on Friday announced what it termed a “historic agreement” with the US government aimed at attracting investments for the recovery and reconstruction of strategic infrastructure in its hydrocarbons sector.
In a statement, Venezuela’s acting President Delcy Rodriguez said the agreement would strengthen bilateral relations and enable major investments in the country’s energy industry.
The deal is expected to significantly increase Venezuela’s oil production with the involvement of private operators, the statement said.
It envisages the development of 17 strategic oil fields with proven reserves of 65 billion barrels, investments exceeding $100 billion and more than $209 billion in tax revenues for the Venezuelan state.
Venezuela holds the world’s largest proven crude oil reserves.
Earlier, on January 3, US forces launched a large-scale strike on Venezuela and forcibly took President Nicolas Maduro and his wife to New York. On January 29, Rodriguez announced the approval of a partial amendment to Venezuela’s hydrocarbons law to allow greater private-sector participation in the oil industry.
(Inputs from IANS)