US-Venezuela Oil Deal: Washington Moves To Secure Access To A Fifth Of Reserves

US President Donald Trump has announced what he described as the “biggest oil deal in world history”, claiming the agreement gives American interests majority control over more than 65 billion barrels of Venezuela’s proven oil reserves.

Trump made the announcement on August 28, saying the deal was reached through a partnership with private businesses and would come at “no cost to the American taxpayer”. However, the exact terms and structure of the agreement were not immediately made public.

The 65 billion barrels covered by the deal represent roughly a fifth of Venezuela’s proven oil reserves. Trump said the arrangement would significantly increase US access to crude and help lower fuel prices, while the Venezuelan government has presented it as a major investment in rebuilding the country’s struggling energy sector.

Trump credited Secretary of State Marco Rubio and Defense Secretary Pete Hegseth with helping secure the agreement, alongside Venezuelan interim President Delcy Rodríguez. He referred to Rodríguez as the “Highly Respected Interim President of Venezuela”.

Rodríguez welcomed the agreement, saying it would support Venezuela’s economic recovery, strengthen energy security across the hemisphere and contribute to greater balance in international oil markets.

What Does The Deal Actually Mean?

While Trump has described the arrangement as giving the US “majority control” of more than 65 billion barrels, the precise legal and financial framework remains unclear.

The agreement reportedly involves a new joint venture linked to 17 Venezuelan oil fields, with the US government expected to hold a majority stake or equivalent control over the venture. Venezuelan authorities have said the deal could attract around $100 billion in investment and generate substantial tax revenues for the country.

The deal is also expected to take years to translate into significantly higher production. Venezuela’s oil infrastructure has suffered from years of underinvestment and mismanagement, meaning extensive capital and technical expertise will be required before production can be substantially expanded.

For Washington, the agreement offers greater access to Venezuela’s vast heavy-crude resources and could eventually strengthen US oil supplies. For Caracas, the priority is attracting the investment needed to revive an industry that remains central to the country’s economy.

The announcement has nevertheless raised questions over the deal’s transparency, legal basis and long-term implications for Venezuelan control over its natural resources.