US Gets Stake in Venezuelan Oil Reserves under Historic Deal
A new agreement between the United States and Venezuela has been announced by President Donald Trump, giving the US access to Venezuela's vast oil reserves. The deal would allow a private company formed with the US government to develop 17 untapped fields, with proven potential of 65 billion barrels.
The agreement was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and Venezuelan acting president Delcy Rodriguez. The new company would hold rights to these oil fields for 100 years and is expected to draw $100 billion in investment into Venezuela's oil industry.
The US would have a 55% effective output of the company, including an ownership stake and rights to buy oil at cost. American purchases of the oil will go toward the US strategic oil reserves along with the military.
However, experts warn that it may take years for Venezuela's dilapidated oil infrastructure to be repaired, making a significant boost in production unlikely in the near future.