President Donald Trump announced Friday that the United States has reached an agreement with Venezuela giving the U.S. majority control of a venture with access to more than 65 billion barrels of the South American country’s proven oil reserves.
The sweeping deal would dramatically expand U.S. access to one of the world’s largest petroleum supplies.
The State Department and Pentagon negotiated the agreement, which gives the U.S. an effective 55% share of output from a new private joint venture, according to a U.S. official. Venezuela’s interim President Delcy Rodríguez granted the venture 100-year concessions covering oil fields with proven reserves, the official added.
The U.S. share will be divided between equity in the venture’s holding company and oil provided to the U.S. government at cost. As production increases, that oil is expected to help replenish the Strategic Petroleum Reserve.
The new entity would become the world’s second-largest corporate holder of proven oil reserves, behind Saudi Aramco, the official said. The official did not identify the company.
Trump called the agreement “THE BIGGEST OIL DEAL IN WORLD HISTORY” in a Truth Social post, adding the deal would come “at no cost to the American Taxpayer” and more than double American oil reserves.
This is a developing story. Check back for updates.
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