The US has reached a deal with Venezuela to control more than 65 billion barrels of its proven oil reserves, according to President Donald Trump.
“This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans,” Trump posted on social media.
After the US arrested Venezuela’s then-President Nicolás Maduro earlier this year, Trump vowed to tap its reserves – the world’s largest. More recently, he has been under pressure to bring gas prices down at home.
Secretary of State Marco Rubio called the deal “a huge win for both the American and Venezuelan people”. Details have not been released.
“For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela’s economy,” Rubio said on social media.
In his post, Trump said Rubio and Defence Secretary Pete Hegseth had reached the agreement with Venezuela’s interim president, Delcy Rodriguez, “through a partnership with private business”.
He did not elaborate on the partnership or describe possible commitments and terms for the US in the deal, but he did say the agreement was reached “at no cost to the American Taxpayer”.
Rodriguez said in a statement that the agreement will have “a significant impact on our nation’ revival”, by bringing in investment in the infrastructure needed for developing the country’s hydrocarbon industry.
The deal calls for the development of 17 strategic oil fields with a proven potential of 65 billion barrels, as well as “an investment of more than $100 billion, and more than $209 billion in taxes for the State”, Rodriguez said.
“These investments will contribute not only to the recovery and modernization 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.
Under the deal the US government will retain 55% control of a joint venture with an “experienced private operator in Venezuela”, which will be divided between equity in the venture and the right to obtain oi at cost, a US official told the BBC’s media partner CBS News.
Rodriguez gave the venture a 100-year concession to operate in the oil fields, according to the official.
On 3 January, Maduro and his wife, Cilia Flores, were seized in a military operation authorised by Trump.
In the hours after the raid, Trump said his administration would run Venezuela until a “safe, proper and judicious transition” could take place, adding that the US would indefinitely control the sale of the country’s oil.
