WASHINGTON: United States President Donald Trump has announced a major oil agreement with Venezuela, saying the US has secured majority control of more than 65 billion barrels of the country’s proven oil reserves.
Trump described the deal as the “biggest oil deal in world history”, claiming it would help lower petrol prices in the United States. The agreement involves developing 17 Venezuelan oil fields through a partnership with private companies.
Venezuela’s interim leader Delcy Rodríguez welcomed the deal, saying it could attract around $100 billion in private investment and generate more than USD 209 billion in tax revenue for the Venezuelan government.
The agreement gives a private company long-term rights to develop the oil fields, while the US is expected to receive about 55 per cent of the new company’s effective output, according to a US official familiar with the arrangement.
However, analysts have raised questions about the deal’s legal structure and whether it can quickly increase Venezuelan oil production. Much of the country’s oil infrastructure requires major investment and repairs, meaning any significant increase in supply could take years.
The agreement comes as Trump faces pressure to tackle rising US petrol prices amid disruptions to global oil supplies caused by the Iran war.
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