US President Donald Trump has announced an unprecedented plan that would give American interests majority control over more than 65 billion barrels of Venezuela’s proven oil reserves, as Washington seeks to increase crude supplies and help lower fuel prices in the United States.
Trump said the agreement was reached through a partnership involving private companies and Venezuelan interim President Delcy Rodriguez. He gave few details about the arrangement, including which oilfields and companies would be involved or how US control would operate.
“At my direction, Secretary of State Marco Rubio and Secretary of War Pete Hegseth” secured majority US control of the reserves, Trump said in a post on Truth Social. He also stressed that the agreement would come at no cost to American taxpayers.
Rodriguez confirmed the deal and described it as a historic agreement that could help revive Venezuela’s economy. She said the plan could attract more than $100 billion in investment and generate over $209 billion in tax revenue for the Venezuelan state.
The announcement follows weeks of negotiations between Washington and Caracas over long-term access to Venezuelan oilfields. Venezuelan officials are expected to sign agreements next week granting new exploration and production rights to several companies, particularly US firms.
Sources previously said a lease-based system was being considered, under which oilfields could be offered to US producers. However, analysts have raised questions about whether such an arrangement would comply with Venezuela’s constitution and hydrocarbons law, which give the state a central role in the oil industry.
Venezuela has the world’s largest proven oil reserves but currently produces only about 1.25 million barrels per day. Years of underinvestment, poor management, political instability and US sanctions have severely damaged its energy sector.
Rubio called the agreement a major benefit for both countries. He said it could secure stable, lower-cost oil for American refineries, potentially helping reduce gasoline prices. He also said nearly $100 billion in private investment could create thousands of well-paid jobs and support Venezuela’s economic recovery.
Energy analysts remain cautious about the potential impact on US fuel prices. Venezuela’s heavy crude requires substantial infrastructure for production, transportation and refining, meaning a major increase in output could take years.
David Goldwyn of Goldwyn Global Strategies questioned whether the US government has a clear legal basis to directly lease Venezuelan oilfields. He also pointed to Venezuela’s weak power grid, limited export capacity and political uncertainty as major barriers to investment.
The proposed agreement would mark a major change in US involvement in Venezuela’s oil sector. Venezuela nationalised its petroleum industry in the 1970s, placing state-owned PDVSA at the centre of production.
Under Hugo Chavez, foreign oil companies were required to operate through state-led partnerships, while assets belonging to companies including Exxon Mobil and ConocoPhillips were later expropriated.
Trump’s administration is now seeking to reverse years of decline by bringing American investment back into Venezuela while securing additional crude for US refineries. The plan also comes as rising gasoline prices put pressure on the administration ahead of the US midterm elections later this year.
