Trump Signs Historic Oil Deal with Venezuela Creating New Energy Giant

US President Donald Trump announced on February 28 that he has signed the largest oil trade agreement in history with Venezuela. The deal will create a new company that manages oil reserves in Venezuela, with the US securing a majority stake of 55%.

The company will have access to over 65 billion barrels of oil reserves, making it the second-largest reserve holder after Saudi Arabia's state-owned Aramco. The agreement is seen as a major boost for the Venezuelan economy, which has been struggling in recent years.

Interim President Delcy Rodriguez called the deal 'historic' and said it will have a 'great impact on our country's rebirth.' She also mentioned that private investment of over $100 billion is possible. The agreement is expected to bring in more than $209 billion in tax revenues for Venezuela.

Chevron and other US energy giants are set to sign contracts with Venezuela to invest billions of dollars in local oil field development. However, Exxon Mobil and ConocoPhillips have withdrawn from the investment due to nationalization of the oil industry in 2007.