Venezuela Hands Over Oil Production and Reserves to US Control

Venezuela has agreed to transfer control of its oil production and reserves to the United States, according to an announcement by President Donald Trump on August 28. The deal, which is set to last for 25 years, will give the US majority control over more than 65 billion barrels of proven oil reserves in Venezuela, as well as 17 oil fields.

The agreement was negotiated by Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth with acting Venezuelan President Delcy Rodríguez. According to Trump, the deal will increase the US's oil supply and lower the price of gasoline for Americans.

However, critics argue that the deal undermines Venezuela's sovereignty and violates its constitution. Analysts warn that surrendering control of strategic assets will lead to loss of autonomy in managing revenue, disrupted political transition, and risk for investors due to lack of legal certainty.