Trump Announces Deal to Control Venezuelan Oil Reserves

US President Donald Trump announced that his administration has reached an agreement with Venezuela to control its vast oil reserves, which could potentially give the US access to 65 billion barrels of untapped oil at cost. The deal involves partnering with a private operator in Venezuela to create a new company that would take hold of the reserves.

According to Trump, the agreement was negotiated by US Secretary of State Marco Rubio and Venezuelan interim President Delcy Rodríguez. Rodríguez's government stated that the deal could draw $100 billion in investment into Venezuela's oil industry and yield over $209 billion in taxes for Caracas.

The agreement allows the US to partner with a private operator to create a new company, which would have 55% effective output, including an ownership stake and rights to buy oil at cost. The deal gives the US 100-year rights to develop the oil fields, with Rodríguez granting the company 100-year rights.

Experts warn that repairing and expanding Venezuela's infrastructure will take years and requires billions of dollars, which could slow down the production process. Trump has argued that his administration has brought a measure of stability to Venezuela, reversing former President Hugo Chavez's nationalization of foreign-owned assets, including those owned by American oil companies.