President Donald Trump on Friday announced what he called the “biggest oil deal in history,” revealing a US-Venezuela agreement that grants Washington majority control over more than 65 billion barrels of proven oil reserves in the South American nation.
Trump said in a post on Truth Social that the United States had entered into a partnership with private businesses to secure the reserves at no cost to American taxpayers. The deal was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela’s acting president Delcy Rodriguez, Trump said.
Rodriguez confirmed the deal in a statement published on Telegram, saying the agreement would unlock more than $100 billion in private investment into Venezuela’s battered oil sector and generate over $209 billion in taxes for the Venezuelan state. She said 17 strategic oil fields would be opened to private operators, particularly American firms.
“This initiative is the result of the strengthening of relations between Venezuela and the United States,” Rodriguez said, adding the deal would support Venezuela’s economic growth while contributing to “the energy security of our hemisphere.”
Bloomberg reported that the arrangement could take the form of a 100-year lease, with the Trump administration then auctioning or allocating fields to selected corporations. Reuters reported that Washington’s direct involvement may be conducted through the Pentagon’s newly established US Overseas Investment Corporation (USOC).
A Century-Long Lease
The deal marks the most aggressive US move into Venezuelan energy since Washington severed diplomatic ties with Caracas years ago. Venezuela holds the world’s largest proven oil reserves, but years of underinvestment, mismanagement, and international sanctions have crushed output to roughly 1.25 million barrels per day, a fraction of its potential.
Under the agreement, American oil giants would gain access to fields that have sat dormant or underproduced for decades. The Pentagon’s potential role through the USOC signals that the deal carries a national security dimension beyond purely commercial interests.
Trump framed the deal as a win for American consumers, arguing it would help bring down gasoline prices at US pumps. With the Iran war now in its sixth month and Strait of Hormuz disruptions still a live concern, new barrels from a non-conflict source carry strategic weight.
Venezuela’s Shifting Alliances
Rodriguez’s announcement also raised the possibility that Venezuela could exit OPEC, a move that would further reshape global oil geopolitics. Bloomberg first reported the OPEC exit discussions, which would strip the cartel of the world’s largest proven reserves holder at a moment when producer unity is already under strain from the Iran conflict.
The deal follows months of diplomatic maneuvering since the January US military incursion in Venezuela that removed former president Nicolas Maduro. Rodriguez, who assumed the acting presidency after Maduro’s removal, has steadily aligned Caracas with Washington on energy policy.
Oil prices held above $83 per barrel on Friday, with Ukrainian strikes on Russian export capacity and ongoing Strait of Hormuz concerns keeping markets tense. The Venezuela deal, if it delivers new supply at scale, could ease some of those pressures over the medium term.
SLB, the multinational oilfield services company, has already secured access to coveted Venezuelan oilfield data through recent contracts, Reuters reported, positioning itself as a key technical partner for the development work ahead.
Implications for Global Markets
The deal reshapes the Western Hemisphere’s energy map. For decades, Venezuela’s oil wealth sat largely untapped by Western firms while PDVSA, the state oil company, deteriorated under political control. US entry on this scale represents a fundamental shift in the country’s economic trajectory.
Energy analysts noted that while 65 billion barrels sounds transformative, actual production ramp-up will take years and require massive infrastructure rehabilitation. Venezuela’s roads, pipelines, and export terminals have suffered from years of neglect.
For OPEC, the potential loss of Venezuela would be symbolic and practical. The country’s small but growing output had been part of coordinated production cuts, and its exit would add yet another fracture to an alliance already divided by the Iran war’s impact on Gulf production.
Trump said final agreements would be signed next week, with details on specific company allocations and field access to follow. The White House did not immediately release the full terms of the deal.
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