Key facts
- Venezuela and the U.S. have signed a 25-year energy agreement.
- The deal aims to increase Venezuela's crude oil production to 1.5 million barrels per day.
- The agreement is expected to generate approximately $209 billion in revenue for Venezuela.
- The U.S. will have majority control over more than 65 billion barrels of Venezuela's proven oil reserves.
- The accord is intended to revive Venezuela's economy and energy sector.
Venezuela's interim president, Delcy Rodriguez, announced on Saturday that a new energy agreement with the U.S. will last for 25 years, aiming to increase crude oil output to 1.5 million barrels per day while preserving the nation's sovereignty over its natural resources. Rodriguez described the accord as a "historic" deal designed to revive the economy and boost government revenue.
The bilateral project involves the development of 17 strategic oilfields with an initial production target exceeding 1.5 million barrels per day, according to Rodriguez. She noted that this figure is an initial goal, with broader plans including the development of eight greenfield oil blocks as part of a wider energy sector expansion.
President Donald Trump had previously announced plans for the U.S. to take partial control of Venezuela's vast oil reserves, estimating that American companies could help revitalize the industry and provide a new crude source to lower U.S. fuel prices. Trump stated the U.S. secured majority control of over 65 billion barrels of Venezuela's proven oil reserves through a partnership with private businesses.
Venezuela possesses the world's largest proven oil reserves but currently produces around 1.25 million barrels per day due to underinvestment, mismanagement, and sanctions. Rodriguez indicated the agreement could generate approximately $209 billion in revenue for the Venezuelan state, based on a benchmark oil price of $65 per barrel, with roughly $19 from each barrel sold flowing directly to the state. She emphasized that Venezuela retains ownership and sovereignty over its resources while leveraging external capital, technology, and expertise.
Earlier on Saturday, pro-government groups protested against the U.S. presence in Venezuela. Venezuelan officials are preparing to sign agreements next week granting new oil exploration and production rights to several companies, including U.S. firms. Sources close to the negotiations indicated that Chevron is among the companies expected to finalize talks to integrate its Venezuelan joint ventures into the country's new energy framework.