Donald Trump said on Friday the United States had reached an agreement with Venezuela giving it majority control of more than 65 billion barrels of the country's proven oil reserves. In a Truth Social post, Trump said the deal, negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and Venezuela's interim president, Delcy Rodríguez, came "at no cost to the American Taxpayer." The announcement came nearly nine months after US forces captured Venezuela's then-president, Nicolás Maduro, who faces narcoterrorism and drug trafficking charges in New York.
What does the agreement cover? Rodríguez said in a statement that it provides for developing 17 strategic oil fields with a proven potential of 65 billion barrels, drawing $100 billion in investment and more than $209 billion in taxes for Venezuela. On Saturday, she said the accord would run for 25 years and target output of 1.5 million barrels a day. A US official told the BBC's US partner CBS News that the US government would retain 55% control of a joint venture with an "experienced private operator in Venezuela," and that Rodríguez had given the venture a 100-year concession.
Will it lower fuel prices? Trump wrote that the deal would "substantially lower Gas Prices for all Americans." After the deal, he promised to "fill up" the Strategic Petroleum Reserve, The Hill reported. Rachel Ziemba, a think-tank analyst, told BBC News the deal was "unlikely to have any material impact on global oil supplies in the next month or even the next year."
How has it been received? Rubio called it "a huge win for both the American and Venezuelan people," while Democrats condemned it. Senator Chris Van Hollen said Trump "put our service members at risk to get Venezuelan oil for his billionaire buddies," and Senator Tim Kaine, in remarks carried by PBS NewsHour, called it "corruption at epic scale." In Venezuela, hard-liners and opposition forces alike criticised Rodríguez, the Japan Times reported. Rodríguez said in a national address that "Venezuela retains ownership and sovereignty over its resources."
What remains unclear? No text of the agreement has been released. Who will pay for infrastructure investment, the identity of the private operator and how the US stake breaks down all remain unclear, PBS NewsHour reported. A US official has also described the US share as 55% of the new company's effective output, though it was not clear how much comes from an ownership stake and how much from rights to buy oil at cost.
Figures referenced: Donald Trump. — JudgeMarket.
