Trump Hails ‘Historic’ Deal for US to Control 65bn Barrels of Venezuela’s Oil

United States President Donald Trump has announced what he describes as the “biggest oil deal in world history,” claiming that Washington has secured majority control over more than 65 billion barrels of Venezuela’s proven oil reserves.

Trump announced the agreement on Friday, August 28, saying it was negotiated by US Secretary of State Marco Rubio, Defence Secretary Pete Hegseth and Venezuela’s interim President Delcy Rodríguez, in partnership with private businesses.

“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 declared in a post on Truth Social.

According to the US president, the transaction will give America majority control over about one-fifth of Venezuela’s vast proven oil reserves without imposing any cost on American taxpayers.

Trump said the agreement would more than double the oil reserves under US control, significantly increase America’s energy supply and help lower petrol prices for consumers.

However, the administration has not yet published the full agreement or identified the private companies expected to develop the oilfields. It also remains unclear how the United States will exercise control over the reserves.

The deal reportedly covers 17 strategic oilfields located mainly in Venezuela’s Orinoco Belt and Lake Maracaibo regions. American companies are expected to receive long-term access to the fields, with the resulting crude oil supply directed largely towards US refineries. (reuters.com⁠)

Secretary of State Marco Rubio described the agreement as beneficial to both countries. He said it would provide the United States with a stable source of lower-cost oil while attracting nearly $100 billion in private investment into Venezuela.

Rubio added that the investments could create thousands of jobs and support the reconstruction of Venezuela’s struggling economy and energy infrastructure.

Interim President Delcy Rodríguez also welcomed the agreement, saying the development of the oilfields would increase production and potentially generate about $209 billion in tax revenue for Venezuela.

“These investments will contribute not only to the recovery and modernisation of our industry, but also to our country’s economic growth, the energy security of our hemisphere and greater balance in international markets,” Rodríguez said.

Venezuela possesses the world’s largest proven oil reserves, estimated at more than 300 billion barrels. However, years of underinvestment, sanctions, political instability, deteriorating infrastructure and poor management have reduced the country’s production to about 1.25 million barrels per day—far below its potential. (reuters.com⁠)

Despite the optimism expressed by Trump and Rodríguez, energy analysts have raised questions about the agreement’s legal and financial structure.

Venezuelan law has historically maintained state control over the country’s oil industry through the national petroleum company, PDVSA. Analysts say granting the US government or foreign companies majority control over oilfields could face constitutional and legal challenges.

Experts have also cautioned that the agreement may not lead to an immediate reduction in fuel prices. Venezuela’s heavy crude requires specialised facilities, while years of neglect have damaged the pipelines, power systems, ports and refineries needed to expand production.

Restoring the industry and bringing large quantities of additional oil to the international market could therefore take several years.

The agreement comes as the Trump administration faces growing pressure to address rising fuel prices in the United States and rebuild the country’s depleted Strategic Petroleum Reserve.

For international consumers, including Ghana, a successful increase in Venezuelan oil production could eventually improve global crude supply and help moderate petroleum prices. However, the immediate effect will depend on how quickly investment begins, whether the legal concerns are resolved and the extent to which the promised production reaches the market.

The announcement marks a dramatic expansion of Washington’s involvement in Venezuela’s oil industry, which was nationalised in the 1970s and brought under tighter state control during the presidency of Hugo Chávez.

While Trump has celebrated the agreement as a historic energy and economic victory, its full impact will only become clear after the legal documents, participating companies, investment terms and implementation timetable are publicly disclosed.