US-Venezuela Oil Deal Set to Last 25 Years

Venezuela's interim President Delcy Rodriguez announced that an oil agreement with the US will remain in effect for 25 years. The deal, which she described as 'historic', aims to increase Venezuela's daily oil production to over 1.5 million barrels.

Rodriguez stated that the agreement would provide approximately $19 for every barrel produced and sold, directly benefiting the country. This could generate around $209.335 billion in revenue from the deal, based on an oil price of $65 per barrel.

The project covers the development of eight crude oil fields in the Orinoco Oil Belt, spanning over 55,000 square kilometers in eastern and east-central Venezuela. The agreement also includes a royalty rate of at least 16% and an income tax rate of 34%, which Rodriguez believes would accelerate Venezuela's economic recovery.