US Secures Long-Term Access to Venezuela's Vast Oil Reserves
The US government has reached a deal with Venezuela to access the country's vast oil reserves. The agreement, touted as 'the biggest oil deal in world history' by President Donald Trump, will give the US a stake in Venezuela's oil industry for 100 years.
The new company formed by the US and an unnamed private operator in Venezuela has been granted rights to untapped oil fields with a proven potential of 65 billion barrels. According to Venezuela's acting president, Delcy Rodríguez, this deal could draw $100 billion in investment into Venezuela's oil industry and yield over $209 billion in taxes for Caracas.
The US will have 55% effective output of the new private 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.