Anabelle Colaco
31 Aug 2026, 12:00 GMT+10
WASHINGTON DC: President Donald Trump said that the United States had secured majority control of more than 65 billion barrels of Venezuela's proven oil reserves through a partnership with private business, as his administration seeks to increase the country's oil production and secure more crude for U.S. refineries.
Trump provided few details about the agreement, which would give the United States control of about a fifth of Venezuela's vast reserves. Venezuela has the world's largest proven oil reserves but produces about 1.25 million barrels per day after years of underinvestment, mismanagement and sanctions.
"At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer," Trump wrote on Truth Social.
The announcement followed weeks of negotiations between Washington and Caracas over an agreement giving American companies long-term access to Venezuelan oilfields and guaranteeing the resulting crude supply to the United States.
Venezuelan officials are preparing to sign agreements next week granting new oil exploration and production rights to several companies, particularly U.S. firms.
Sources have said a lease model was under consideration, potentially involving auctions of fields to U.S. producers. The arrangement could face legal and constitutional challenges because Venezuela retains state control over core oil industry activities.
Trump did not disclose the agreement's structure, the companies or fields involved, or how the United States would exercise majority control. A list seen by Reuters showed the fields are in the Orinoco Belt and Lake Maracaibo regions.
Rubio said the agreement would provide stable, low-cost oil for the United States and help lower gasoline prices. He said it would also bring nearly US$100 billion in private investment to Venezuela and support thousands of high-paying jobs.
Rodriguez, who became interim leader after the United States seized President Nicolas Maduro in January, said the agreement would significantly increase production by developing 17 strategic fields and generate $209 billion in tax revenue.