President Donald Trump announced a historic deal granting the United States majority control over 60 billion barrels of proven Venezuelan oil reserves. Reached in partnership with private business at no cost to American taxpayers, the agreement aims to boost oil supplies, lower gas prices, and drive Venezuela’s economic reconstruction.
Majority Control of Venezuelan Reserves Secured
The United States has clinched an agreement to control more than 65 billion barrels of its proven oil reserves, according to President Donald Trump. While initial figures from the administration cited over 60 billion barrels of proven Venezuelan oil reserves, the transaction marks an expansion of American energy oversight following a U.S. military operation earlier this year that replaced the country’s leadership.
A U.S. official told reporters that interim Venezuelan President Delcy Rodriguez granted a private joint venture a 100-year concession to operate in oil fields accounting for 63 billion barrels of petroleum. The arrangement functions as a joint project of the U.S. government and an experienced private operator in Venezuela, positioning the venture as the world’s second-largest corporate owner of proven oil reserves behind Saudi Aramco.
Financial Structure and Government Equity
Under the terms of the agreement, the U.S. government will maintain a 55% stake in the newly formed joint venture. This controlling interest is divided between direct equity in the corporate entity and the strategic right to obtain oil from the fields at cost, as detailed by the administration official.
President Trump emphasized that the accord was forged through a partnership with private business and established at no cost to the American Taxpayer. Secretary of State Marco Rubio praised the pact on social media, asserting that it stands as a huge win for both the American and Venezuelan people.
Navigating Venezuela’s Energy Landscape
The agreement represents the culmination of intense administration efforts to lure foreign energy companies back to South America’s largest oil producer. Venezuela holds the world’s largest proven oil reserves at just over 300 billion barrels, sharply dwarfing the United States’ reserves of less than 50 billion barrels. Despite these vast riches, the local oil infrastructure has suffered from decades of underinvestment, severe decrepitude, and punishing international sanctions.
Major international operators remain cautious due to historical precedent. Companies like ConocoPhillips and ExxonMobil previously exited the nation when former President Hugo Chávez nationalized private energy assets nearly two decades ago. Earlier this year, ExxonMobil CEO Darren Woods noted that his company’s assets had been seized twice under past administrations, warning that reentering would require some pretty significant changes from what we’ve historically seen here and what is currently the state.
Sanctions Relief and Corporate Participation
To pave the way for foreign capital, the U.S. Treasury Department has eased sanctions on Venezuela’s oil sector, while interim leader Delcy Rodriguez signed new legislation permitting private management of oil extraction. While the specific private operators involved in the newly minted 100-year concession have not been fully detailed, Chevron remains the sole major U.S. company that maintained a continuous presence in the country.
Other international firms are slowly reassessing their positions. European companies such as Spain-based Repsol and Italy-based Eni have kept a minimal footprint, and independent operators like Hunt Oil Company reportedly inked a separate preliminary agreement with the state-run Petróleos de Venezuela, S.A.
Political Shifts and Unresolved Questions
The energy pact follows the dramatic events of January 3, when U.S. military forces authorized by President Trump captured then-President Nicolás Maduro and his wife, Cilia Flores, in a targeted raid. In the immediate aftermath, Trump declared that his administration would oversee Venezuela until a safe, proper and judicious transition could be achieved.
While administration officials have outlined the broad equity splits and concession terms, several operational details remain opaque. It remains unconfirmed which specific private energy conglomerates will shoulder the burden of rehabilitating the dormant oil fields, and how quickly large-scale production can overcome decades of infrastructural decay to genuinely impact domestic gasoline prices at home.
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