Trump hails deal for US to control 65bn oil barrels
Donald Trump announces a historic agreement for the US to control 65 billion barrels of Venezuelan oil reserves with a $100bn investment.
Stock photo for illustration only, not from the actual event
- Trump announces a historic deal for the US to control 65 billion barrels of Venezuelan oil.
- Interim President Delcy Rodriguez grants a 100-year concession for the oil fields.
- The agreement involves developing 17 strategic oil fields with over $100 billion in investments.
- Secretary of State Marco Rubio calls the agreement a huge win for both nations.
Donald Trump has taken to social media to announce a historic agreement giving the United States control over 65 billion barrels of oil reserves in Venezuela. The US leader stated that the transaction will more than double American oil reserves, significantly boost the domestic oil supply, and substantially lower gasoline prices for all Americans amid price spikes caused by the ongoing Iran conflict.
Venezuela's interim President, Delcy Rodriguez, welcomed the pact as a vital driver for her nation's economic revival. Meanwhile, US Secretary of State Marco Rubio described the oil agreement as a massive win for both the American and Venezuelan people, emphasizing that the deal was secured at no cost to American taxpayers.
According to Rodriguez, the pact entails developing 17 strategic oil fields holding a proven potential of 65 billion barrels, alongside an investment exceeding $100 billion and more than $209 billion generated in state taxes. Furthermore, the official stated that the venture grants a 100-year concession to operate within these oil fields.
Stock photo for illustration only, not from the actual event
"This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans"
Donald Trump
The highly unusual agreement comes in the wake of a US special forces operation authorized by Trump on January 3, which resulted in the seizure of former President Nicolás Maduro and his wife, Cilia Flores. Venezuela currently holds the world's largest proven oil reserves estimated at 303 billion barrels, though production has fallen sharply since peaking in the late 1990s.
Granting a foreign nation direct governance over sovereign natural resources in this manner is exceptionally rare in modern geopolitics, drawing historical parallels to the US-led Coalition Provisional Authority's oversight of Iraqi oil revenues following the 2003 invasion. However, uncertainty remains regarding potential legal and constitutional challenges inside South America as the official text between Washington and Caracas has yet to be publicly released.
Trump has urged American oil firms to invest at least $100 billion, equivalent to about £75 billion, to help revive Venezuela's struggling oil sector, despite many specifics regarding long-term commitments and terms remaining undisclosed.
Source: BBC Business
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