Washington (United States), 29 Aug. (LaPresse/AP) – US President Donald Trump has announced an agreement between the United States and Venezuela for the development of 17 oil fields with an estimated potential of 65 billion barrels, describing it as “the biggest oil deal in world history”. According to the US President, the agreement was negotiated by Secretary of State Marco Rubio, Defence Secretary Pete Hegseth and Venezuela’s interim President Delcy Rodriguez. The government in Caracas explained that the project could attract up to $100 billion in investment in Venezuela’s oil sector and generate over $209 billion in tax revenue. According to a US official quoted by the Associated Press, the agreement provides for the creation, in partnership with an unidentified private operator, of a new company tasked with developing the reserves. Washington would hold an effective 55 per cent stake in production, including ownership rights and the option to purchase oil at cost price. Caracas is also said to have granted exploitation rights for 100 years. The oil purchased by the new company is expected to help replenish US strategic reserves and meet part of the military’s requirements. The announcement comes as Trump faces mounting pressure over rising petrol prices in the United States, against a backdrop of slowing crude oil supplies through the Strait of Hormuz due to the conflict with Iran. An immediate fall in prices, however, seems unlikely. Experts point out that a significant increase in Venezuelan production will take years and require substantial investment to repair and expand severely deteriorated infrastructure. Venezuela has reserves estimated at around 303 billion barrels – among the largest in the world – but currently produces only a limited share of global oil precisely because of the state of its infrastructure.
Venezuela: Trump announces a 65 billion barrel oil deal
Washington (United States), 29 Aug. (LaPresse/AP) – US President Donald Trump has announced an agreement between the United States and Venezuela for the development of 17 oil fields with an estimated potential of 65 billion barrels, describing it as “the biggest oil deal in world history”. According to the US President, the agreement was negotiated by Secretary of State Marco Rubio, Defence Secretary Pete Hegseth and Venezuela’s interim President Delcy Rodriguez. The government in Caracas explained that the project could attract up to $100 billion in investment in Venezuela’s oil sector and generate over $209 billion in tax revenue. According to a US official quoted by the Associated Press, the agreement provides for the creation, in partnership with an unidentified private operator, of a new company tasked with developing the reserves. Washington would hold an effective 55 per cent stake in production, including ownership rights and the option to purchase oil at cost price. Caracas is also said to have granted exploitation rights for 100 years. The oil purchased by the new company is expected to help replenish US strategic reserves and meet part of the military’s requirements. The announcement comes as Trump faces mounting pressure over rising petrol prices in the United States, against a backdrop of slowing crude oil supplies through the Strait of Hormuz due to the conflict with Iran. An immediate fall in prices, however, seems unlikely. Experts point out that a significant increase in Venezuelan production will take years and require substantial investment to repair and expand severely deteriorated infrastructure. Venezuela has reserves estimated at around 303 billion barrels – among the largest in the world – but currently produces only a limited share of global oil precisely because of the state of its infrastructure.