Trump Announces US Takeover of 65 Billion Barrels of Venezuela Oil Reserves in Unprecedented Deal

President Donald Trump announced Friday that the United States has secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves, a vast expansion of American involvement in the South American nation’s battered energy industry.

Trump described the agreement, reached through negotiations with Venezuelan interim leader Delcy Rodriguez, as the “biggest oil deal in world history.” Writing on Truth Social, Trump said the deal was struck “at no cost to the American Taxpayer” and would more than double U.S. oil reserves while increasing supplies and lowering gasoline prices for American consumers.

The 65 billion barrels represent roughly one-fifth of Venezuela’s proven reserves, the largest in the world. Yet Venezuela currently produces only about 1.25 million barrels of crude per day – a fraction of its potential after years of underinvestment, mismanagement and sanctions.

**Few Details Released**

Trump provided scant details on the structure of the arrangement, the fields involved or the companies that will participate. A list reviewed by Reuters identified target fields in the Orinoco Belt and Lake Maracaibo regions.

According to multiple reports, Venezuelan officials are preparing to sign agreements next week granting new exploration and production rights to a number of companies, particularly U.S. firms. Sources told Reuters that a lease model was under consideration, with fields potentially auctioned to U.S. producers. However, Venezuela’s constitution and hydrocarbons laws have traditionally reserved a central role for the state, meaning the arrangement could face legal and constitutional challenges.

The announcement followed weeks of U.S.-Venezuelan negotiations. Trump said the deal was negotiated by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth “working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business.”

**Venezuela Welcomes Investment, $209 Billion Tax Revenue**

Rodriguez welcomed the agreement, saying it would help revive the country’s oil industry and generate significant revenue. She said the plan would support development of 17 strategic fields and could generate about $209 billion in tax revenue for Venezuela.

U.S. and Venezuelan officials said the agreement could attract nearly $100 billion in private investment. Rubio called the deal a “win-win,” saying it would provide the United States with a stable source of lower-cost crude while helping Venezuela attract investment, create jobs and rebuild its economy.

“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,” Rodriguez said in a statement.

**Analysts Question Legal Basis, Timelines**

David Goldwyn, president of Goldwyn Global Strategies, said the legal basis for a U.S. government lease to operate Venezuelan oil fields was unclear and noted there was “no precedent for having the U.S. government enter into a lease to operate oil fields.”

Goldwyn also questioned whether the plan would address the obstacles that have deterred investment 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.

Analysts cautioned that even if investment begins quickly, rebuilding production capacity and infrastructure could take years. Much of Venezuela’s crude is heavy oil requiring specialized technology and substantial investment to extract, transport and refine.

**Political Context: Midterm Pressure, Strategic Reserve**

The Trump administration is under pressure ahead of November’s midterm elections over rising gasoline prices. The agreement gives Washington a potential new source of crude to help ease consumer costs.

The U.S. has also been looking for ways to replenish the Strategic Petroleum Reserve, its emergency crude stockpile. Trump said some of the Venezuelan oil could be used for that purpose and to meet military energy requirements.

One report from NDTV Profit noted that the deal comes amid disruptions to global oil supplies linked to the Strait of Hormuz, heightening the importance of alternative crude sources.

**Long History of Nationalization**

Venezuela nationalized its oil industry in the 1970s, placing state-owned PDVSA at the center of production. Under former President Hugo Chavez, Caracas tightened control, forcing foreign producers into state-led joint ventures before later expropriating assets, including projects operated by ExxonMobil and ConocoPhillips.

Under former President Nicolas Maduro, who was captured and removed by the U.S. in January, oil production fell sharply due to economic collapse, mismanagement, sanctions and lack of investment. Since then, Washington has been working to secure a stable flow of Venezuelan crude for U.S. refineries while promoting American investment.

The agreement gives the United States a potentially significant new foothold in Venezuela’s energy sector, but its economic impact will depend heavily on whether the deal can withstand legal scrutiny, attract real investment and overcome decades of industrial decay.