Venezuela- US Oil Deal: 25-Year Partnership Aims to Boost Production and Revenue

Venezuela's interim president Delcy Rodríguez has defended an oil agreement with the United States, calling it a 'diplomatic and economic breakthrough'. The deal aims to pair Venezuelan reserves and workers with American capital and technology while preserving national ownership of Venezuela's oil.

The 25-year project targets production of over 1.5 million barrels per day from 17 strategic fields. Rodríguez said the arrangement would see Venezuela contribute its oil reserves, industry expertise, and workers' experience in exchange for US capital and technology to revive production.

Under the agreement, Venezuela would retain sovereignty over its resources and receive around $19 per barrel produced and sold, with an estimated revenue of over $209 billion at a price of $65 per barrel. Rodríguez estimates this money will support public services, healthcare, education, roads, jobs, and infrastructure.

US Senator Ted Cruz has expressed skepticism about the agreement, calling for free and fair elections in Venezuela before the oil pact is finalized. He believes Venezuela should hold democratic elections within the next year to legitimize the process.