Trump Announces Venezuela Oil Deal Worth Billions

US President Donald Trump has announced a deal with Venezuela to give America a stake in its vast oil reserves, calling it 'THE BIGGEST OIL DEAL IN WORLD HISTORY'. The agreement would involve a new company formed by the US government and an unnamed private operator, which would be given rights to untapped oil fields for 100 years. According to acting President Delcy Rodríguez, the deal could draw $100 billion in investment into Venezuela's oil industry and yield over $209 billion in taxes for Caracas.

The deal gives the US 55% effective output of the new private company, including an ownership stake and rights to buy oil at cost. American purchases of the oil would go toward the US strategic oil reserves along with the military, according to a US official who spoke on condition of anonymity. The company would be the second-largest corporate holder of proven reserves after Saudi Aramco.

However, experts have warned that Venezuela's dilapidated oil infrastructure will take years and billions of dollars to repair, and a substantial boost in production is not expected to happen quickly. The average price of gas in the US stood at about $4.08 a gallon on Saturday, according to AAA, while last year it was $3.20.