US-Venezuela Oil Deal Raises Concerns Over Legality and Transparency

A sweeping oil agreement between the US and Venezuela has raised concerns over its legality, transparency, and ability to deliver on promised production. The deal gives the US access to about a fifth of Venezuela's crude reserves, covering 65 billion barrels of recoverable oil, more than the 46 billion barrels of proved reserves in the US.

Under the agreement, the US would have majority control over the development of 17 strategic oilfields with a production target of over 1.5 million barrels per day. Venezuela's interim President Delcy Rodríguez called the pact 'historic' and said it would secure $100 billion in investment and $209.3 billion in royalties and taxes.

However, experts have questioned the lack of transparency surrounding the deal, particularly given that negotiations remained secret until last week. Some have also raised concerns about the arrangement under which the US is expected to choose the operating model and participating companies.