Trump hails 'historic' deal for US to take partial control of Venezuela's vast oil reserves

The US president provided few details about the agreement, saying only that the US had secured majority control of more than 65 billion barrels of Venezuela's proven oil reserves through a partnership with private business.

The South American nation's leader welcomed the agreement, saying it would boost the economy and government revenue.

The new deal would represent a dramatic expansion of the US role in Venezuela's oil industry as the Trump administration seeks to revive the country's production and secure more crude for US refineries.

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Venezuela holds the world's largest proven oil reserves but produces only about 1.25 million barrels per day, far below its potential after years of underinvestment, mismanagement and sanctions.

"At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority US control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer," Mr Trump wrote on Truth Social.

The announcement followed weeks of US-Venezuelan negotiations over a deal that would give American companies long-term access to a group of Venezuelan oilfields and guarantee the resulting crude supply to the United States.

Venezuelan officials are preparing to sign agreements next week granting new oil exploration and production rights to a number of companies, particularly US firms.

Sources said that a lease model was under consideration, with fields potentially auctioned to US producers, but the arrangement could face legal and constitutional challenges in Venezuela, where the state retains control over core oil industry activities.

Mr Trump did not disclose the structure of the agreement, the fields or companies involved or how the United States would exercise majority control over the reserves; however, the list is thought to include fields in the Orinoco Belt and Lake Maracaibo regions.

Mr Rubio described the agreement as a win for both countries, saying on X that it would secure stable, low-cost oil for the United States and help lower gasoline prices.

For Venezuela, Mr Rubio said the deal would bring nearly $100 billion (£74 billion) in private investment, support thousands of high-paying jobs and help rebuild the country's economy.

Ms Rodriguez, who became interim leader after the US seized President Nicolas Maduro in January, said late on Friday that the agreement would allow for a significant increase in production through the development of 17 strategic fields and result in tax revenue for the country totalling $209 billion (£154 billion).

"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," she said in a statement.

David Goldwyn, president of Goldwyn Global Strategies, said it was unclear whether a US government lease would have a legal basis under Venezuela's constitution and its new hydrocarbons law, adding that there is "no precedent for having the US government enter into a lease to operate oil fields."

Mr Goldwyn also questioned whether the plan would address the obstacles that have deterred investment in Venezuela for years.

"It is hard to see how this kind of arrangement would accelerate investment at any material scale," he said, citing political uncertainty, an inadequate power grid, limited export capacity and government discretion over the industry.

Since removing President Maduro, Washington has been trying to secure a stable flow of Venezuelan crude ​for US refineries while promoting American investment in the country's oil industry.

Venezuela nationalised its oil industry in the 1970s, putting state-run PDVSA at its centre.

Under then-President Hugo Chavez, the government tightened control, forcing foreign producers into state-led joint ventures and later expropriating assets.

Under Mr Maduro's rule, Venezuela's production fell sharply.