- US President Donald Trump has announced a 100-year oil extraction agreement covering 17 Venezuelan fields representing 65 billion barrels.
- The deal stipulates that the United States will receive 55% of the production from a new private company at cost price.
- This partnership could generate $100 billion in investment for Venezuela, which is currently facing a severe infrastructure crisis.
An unprecedented energy partnership between Washington and Caracas
The President of the United States, Donald Trump, has announced the conclusion of a wide-ranging oil agreement with Venezuela. Negotiated by US Secretary of State Marco Rubio, Secretary of Defence Pete Hegseth, and the acting President of Venezuela, Delcy Rodríguez, the treaty covers the exploitation of 17 oil fields containing approximately 65 billion barrels of reserves. This agreement allows the United States to partner with an unidentified private Venezuelan operator to create a joint venture with exclusive extraction rights for a period of 100 years. Under this arrangement, Washington will hold 55% of the new entity’s production, with the option to purchase crude at cost price. The resulting structure would become the second-largest holder of proven reserves in the world, trailing only Saudi Aramco. For Caracas, the project promises to attract up to $100 billion in investment and generate more than $209 billion in tax revenue.
A response to energy tensions with no immediate effect on prices
This announcement comes amid heavy pressure on the US administration, which is grappling with a sharp rise in fuel prices following the conflict in Iran that has paralysed the Strait of Hormuz. US strategic reserves have fallen below 300 million barrels, while the average price of a gallon of petrol has reached $4.09 in the United States. However, experts warn that no significant drop in prices at the pump is expected in the short term, as modernising Venezuelan infrastructure will require years of investment. Furthermore, convincing oil giants to commit to Venezuela remains complex due to persistent political instability. Nevertheless, this signing marks a major diplomatic turning point, just nine months after the US military operation that led to the capture of former president Nicolás Maduro, who is being prosecuted in the United States for drug trafficking.
