The United States has reached an agreement with Venezuela covering more than 65 billion barrels of oil reserves, President Trump announced. The president described the deal as historic, saying it would give the US control over a significant portion of Venezuelan oil production. A US official said the arrangement would involve a partnership with a private company.
Venezuela's interim president said the agreement would help revive the country's economy. The deal represents an unusual arrangement between the two countries, which have had strained relations for years. Trump hailed the agreement as a major accomplishment for American energy interests.
The 65 billion barrels covered by the agreement represent a substantial share of Venezuela's total oil reserves, which are among the largest in the world. Venezuela's oil industry has deteriorated significantly in recent years due to underinvestment and economic turmoil. The country's production capacity has fallen dramatically from its historical peaks.
The structure of the deal involves American control through a partnership with a private company rather than direct government ownership. This arrangement allows the US to exercise influence over Venezuelan oil production while maintaining the appearance of commercial operations. The interim Venezuelan government framed the agreement as an economic necessity to rebuild the country's primary revenue source.
The deal comes as Trump enters the midterm campaign season facing economic challenges at home. The agreement could potentially increase oil supplies and ease pressure on energy prices, though the timeline for implementation and production increases remains unclear. The arrangement also marks a significant shift in US-Venezuela relations and could reshape energy markets if production recovers substantially.