The United States and Venezuela have finalized an unprecedented oil agreement granting Washington control over 65 billion barrels of Venezuelan crude reserves, a volume exceeding the U.S.'s total proven reserves of 46 billion barrels. Announced by U.S. President Donald Trump and confirmed by Venezuelan interim President Delcy Rodriguez, the 25-year pact outlines a structure where the U.S. holds a 55% stake in the partnership.
Under the terms, Venezuela is projected to receive $100 billion in investments alongside $209.3 billion in taxes and royalties, with approximately $19 per barrel retained domestically. The deal arrives as U.S. strategic petroleum reserves hover near a 44-year low, driven by supply disruptions linked to regional conflicts. The arrangement targets 17 oil fields, primarily in the Orinoco Belt and Maracaibo Lake, with an estimated 20% recovery rate—a technically feasible but historically unmet threshold.
Critics highlight significant concerns over transparency and legality. Negotiations occurred without public tender, raising questions about the viability of Venezuela's institutional framework. Legal experts, including Juan Carlos Apitz of Venezuela’s Central University, suggest the agreement may face future court challenges despite U.S. recognition. Financial analysts, such as Francisco Monaldi of Rice University’s Baker Institute, question the fiscal terms, citing opaque oil policies under U.S. oversight since January.
The deal’s operational scope includes both developed and undeveloped fields, enabling immediate export capacity while infrastructure repairs and heavy-oil extraction in the Orinoco Belt progress. While Trump framed the pact as a partnership with private entities, the involvement of firms such as North American Blue Energy Partners—led by controversial investor Alejandro Betancourt—remains unconfirmed by U.S. or Venezuelan authorities.
Venezuela’s state oil company PDVSA and the country’s oil ministry have not commented on the agreement, leaving key operational details unresolved.
