Trump scores ‘biggest oil deal in world history,’ as US to control 65 billion barrels in Venezuela

WASHINGTON, DC: President Donald Trump on Friday, August 28, announced that the United States had reached an oil agreement with Venezuela that the president said gives the US majority control of more than 65 billion barrels of Venezuelan oil reserves.

Trump said the deal would more than double US oil reserves, increase supply and lower gasoline prices. A White House official said the arrangement involves a new private joint venture in which the US government will have 55% effective output.

US to take majority control through new Venezuela oil venture

Trump announced the deal in a post on Truth Social stating that at the president's direction, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth negotiated the agreement with Venezuelan interim President Delcy Rodriguez.

Trump added that the deal secured "through a partnership with private business, have secured majority US control of more than 65 billion barrels of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer."

A White House official told CBS News that the agreement gives the United States "55% effective output of a new private joint venture that will be the second-largest private oil company by reserves in the world." According to the official, Rodriguez granted the private venture 100-year concessions to operate the oil fields.

Rodriguez said the agreement covers 17 strategic oil fields with a proven potential of 65 billion barrels. She said the deal involves more than $100 billion in investment and more than $209 billion in taxes for the Venezuelan state.

"Our goal is to move toward consolidating our position as an energy-producing power, putting our immense reserves at the service of national development, job creation, increased income for our workers, and the well-being of our people," Rodriguez said in a statement posted on X.

Trump ties Venezuela oil deal to US gas prices

Trump's announcement comes as US gasoline prices remain above $4 a gallon and after the Iran war disrupted a fifth of the world's oil supply, putting pressure on global energy markets. The president consequently said that the Venezuela agreement would increase American oil supplies and reduce prices for consumers.

"This Historic Transaction more than doubles American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future, while helping to continue to set Venezuela on a course toward Tremendous Success and Great Prosperity," Trump wrote.

Rubio described the agreement as "a huge win for both the American and Venezuelan people," saying it would bring nearly $100 billion in private investment, support thousands of jobs and aid Venezuela's economic reconstruction.

US companies set to help rebuild Venezuela's oil industry

The agreement follows Trump's January military operation that resulted in the capture of ousted Venezuelan President Nicolas Maduro and his wife, Cilia Flores, who were taken to New York to face criminal charges. Trump subsequently said US companies would help rebuild Venezuela's oil industry.

Venezuela has an estimated 303 billion barrels of proven oil reserves, the largest such reserves in the world, although its production has fallen sharply from its peak in the late 1990s.