Trump hails 'historic' deal for US to control 65bn barrels of Venezuelan oil

The United States has finalized an agreement with Venezuela, securing access to over 65 billion barrels of the South American nation's verified oil reserves, according to an announcement by Donald Trump.

The American president stated in writing that this accord would more than double the oil reserves held by the US and lead to a significant decrease in gasoline prices for all American citizens.

Venezuela's acting President, Delcy Rodríguez, expressed her support for the agreement, suggesting it would be instrumental in her country's economic revitalization.

Trump has recently faced domestic pressure to curb rising petrol costs, which have escalated following the conflict in Iran.

He previously pledged to utilize Venezuela's vast oil reserves, the world's largest, after the US apprehended its then-President, Nicolás Maduro, in January, ostensibly to face drug-related charges in New York.

US Secretary of State Marco Rubio characterized the oil agreement as a substantial benefit for both the American and Venezuelan populations, though limited specific information was made public.

Rubio explained that for Venezuelans, this arrangement would attract nearly $100 billion (£74 billion) in private investments, create thousands of well-paying jobs, and stimulate the rebuilding of Venezuela's economy.

Trump credited Rubio and Defense Secretary Pete Hegseth with negotiating the deal with Venezuela's leadership, describing it as a collaborative effort involving private businesses.

He did not provide further details about this partnership or outline any potential commitments or conditions for the US within the agreement, yet he asserted that the deal incurred no expense for American taxpayers.

An American official informed the BBC's US affiliate, CBS News, that the US government would maintain a 55% ownership stake in a joint venture with an experienced private operator working in Venezuela under the terms of the deal.

The Wall Street Journal reported on Friday that major US energy corporations, Chevron and Halliburton, were close to signing agreements to invest billions in modernizing the infrastructure of Venezuela's numerous underdeveloped oil fields.

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Venezuela's interim president issued a statement confirming that the agreement would have a considerable positive impact on her nation's recovery.

Rodríguez detailed that the agreement involves the development of 17 key oil fields with proven potential of 65 billion barrels, alongside investments exceeding $100 billion and more than $209 billion in tax revenues for Venezuela.

She further remarked that these financial injections would not only contribute to the restoration and modernization of their industry but also to the country's economic growth, the energy security of the hemisphere, and greater stability in global markets.

Conversely, Ricardo Hausmann, a Harvard professor and former planning minister for the Venezuelan government, predicted the deal would be a complete failure for all parties involved.

Hausmann voiced his concerns on X, stating that an illegitimate interim government operating with an illegitimate hydrocarbons law lacks the authority to enter into such an unconstitutional agreement.

Francisco Rodríguez, a Venezuelan economist and senior research fellow at the US-based Center for Economic and Policy Research think tank, shared similar misgivings as Hausmann.