The United States and Venezuela have struck an oil deal concerning more than 65 billion barrels of reserves
The agreement provides American companies with access to Venezuelan fields and could attract nearly $100 billion in private investment
The United States and Venezuela struck an oil deal that provides for long-term access for American companies to a group of Venezuelan oil fields. The President of the United States, Donald Trump, called the agreement “the largest in the world” in a post on the social network Truth Social.
According to Trump, the deal gives the United States control over more than 65 billion barrels of proven Venezuelan oil reserves. He also stated that the agreement would not require expenditures by American taxpayers.
The U.S. president believes the deal could more than double the country’s oil reserves, expand crude supplies, and help lower gasoline prices in the United States.
Participating in the negotiations and reaching the agreement were U.S. Secretary of State Marco Rubio, U.S. Secretary of Defense Pit Hegset, interim President of Venezuela Delsi Rodriguez, and representatives of private business. At the same time Donald Trump did not disclose details of the agreement.
According to Reuters, the parties are considering a lease model under which Venezuelan fields could be put up for auction to American producers. However, implementation of the agreement may face legal and constitutional constraints: the state of Venezuela retains control over the main types of activity in the oil industry.
According to Reuters, the Venezuelan authorities plan to sign agreements on new exploration and production rights for oil as early as next week. Primarily, they may enter into them with American companies.
Delsi Rodriguez welcomed the agreement. She said the deal provides for the development of 17 strategic fields and could provide Venezuela with about $209 billion in tax revenues.
Marco Rubio said the agreement also provides for nearly $100 billion in private investment in Venezuela.
In October 2022, the U.S. administration prepared to ease sanctions against Venezuela. This was intended to allow the company Chevron to resume oil production in the country in exchange for supplying crude to the global market.
