Key facts
- The U.S. has secured majority control of 17 Venezuelan oil fields through a new deal.
- The U.S. Department of Defense will have a 35% stake in a joint U.S.-Venezuelan private company managing the fields.
- The company holds 100-year leases for these fields, estimated to contain over 65 billion barrels of oil reserves.
- The U.S. will have the right to purchase oil produced at cost.
- Venezuelan officials claim the deal will boost the country's economy, while critics deem it unfavorable and potentially unconstitutional.
The United States has entered into an agreement to gain majority control over 17 Venezuelan oil fields, a move announced by President Donald Trump. The deal involves a joint U.S.-Venezuelan private company, North American Blue Energy Partners, which will hold 100-year leases for these fields, estimated to contain over 65 billion barrels of oil reserves. The U.S. Department of Defense will hold a 35% stake in this company and will have the right to purchase oil at cost.
President Trump hailed the agreement as a significant achievement, suggesting it would generate substantial profits for both nations and bolster U.S. oil supply, particularly as strategic reserves are depleted by conflicts elsewhere. Venezuela's acting President Delcy Rodríguez defended the deal, asserting that it would stimulate the country's economy through increased production, employment, and investment.
However, the agreement has drawn criticism from various quarters. Venezuelan economist Francisco Rodríguez described the deal as "extremely shady" and "unfavorable to Venezuela," suggesting it could violate the Venezuelan Constitution and implying it was made under duress, akin to "gunpoint diplomacy." Maryland Senator Chris Van Hollen also voiced criticism, stating that the deal put U.S. service members at risk to secure Venezuelan oil for the Trump administration.
Reports accompanying the deal also allege that the U.S. military abducted President Nicolás Maduro and his wife, and that U.S. Secretary of State Marco Rubio has effectively taken control of Venezuela's finances and natural resources.