The U.S. is to take control of a fifth of Venezuela’s vast oil reserves, President Donald Trump announced on Friday. He said that Washington had secured control of more than 65 billion barrels of the South American country’s reserves through a partnership with private business.
"At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 billion barrels of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer," Trump wrote on Truth Social.
The new agreement would represent a dramatic expansion of Washington’s role in Venezuela’s oil industry, at a time when the Trump administration is trying to secure more crude for U.S. refineries.
Venezuela holds the world's largest proven oil reserves, but produces only about 1.25 million barrels per day, far below its potential after years of underinvestment, mismanagement and sanctions.
Venezuela’s Acting President, Delcy Rodríguez, hailed the agreement as significant for the country’s development, noting that it involved $100 billion in investment and a projected over $209 billion in taxes for the government.
“These investments will contribute not only to the recovery and modernization of our industry, but also to our country’s economic growth, the energy security of our hemisphere, and greater balance in international markets,” she said.
Rodríguez, who became interim leader after the U.S. captured ex-President Nicolas Maduro in January, added that the agreement marked a “historic milestone” in relations between Caracas and Washington.
The announcement followed weeks of U.S.-Venezuelan talks over a deal that would give American companies long-term access to a group of Venezuelan oil fields and guarantee the resulting crude supply to the United States.
Venezuelan officials are preparing to sign agreements next week granting new oil exploration and production rights to a number of companies, particularly U.S. firms.
Sources have said that a lease model was under consideration. Any agreement could still face legal challenges in Venezuela, where the government retains control over the oil industry’s core activities.
A list seen by Reuters shows the fields which the U.S. could gain access to are in the Orinoco Belt and Lake Maracaibo regions. The Orinoco Belt region in the south and east of the country holds the world’s largest crude reserves.
U.S. Secretary of State Marco Rubio said the agreement was a win for the American and Venezuelan people.
“It demonstrates how President Trump's bold foreign policy is driving America First wins: securing stable reserves and low-cost oil in our Hemisphere and lowering gas prices here at home,” he said in a post on X.
David Goldwyn, President of energy consultancy Goldwyn Global Strategies, questioned whether the plan would address the obstacles that have deterred investment in Venezuela for years.
"It is hard to see how this kind of arrangement would accelerate investment at any material scale," he said, citing political uncertainty, an inadequate power grid, limited export capacity and government discretion over the industry.
Venezuela nationalised its oil industry in the 1970s, putting state-run PDVSA at its centre. Under then-President Hugo Chavez, the government expropriated assets, including projects operated by U.S. energy firms ExxonMobil and ConocoPhillips.
Japan and the UN Office on Drugs and Crime have launched a $9.4 million, two-year project across five Afghan provinces to help former poppy-growing...
A U.S. campaign to throttle Iran...
For centuries, Lahore has been shaped by the people, cultures and empires that passed through it. Now, the Pakistani city is preparing to put that ...
Russian President Vladimir Putin has said that he thinks there is a chance of a peace being reached with Ukraine. He told the Eastern Economic Forum in Vladivostok, Russia that he believed there was "a chance of finding a solution," to the conflict.
The Iranian Health Ministry said at least 18 people were killed and 142 others injured in U.S. airstrikes carried out between 30 August and 2 September.
U.S. negotiators Steve Witkoff and Jared Kushner will visit Russia then Ukraine over the weekend, Russian state news agency TASS has reported, citing an unnamed source. Ukrainian President Volodymyr Zelenskyy has also said American envoys will visit the capitals of both countries.
The Iranian Army has again struck at U.S. bases in Kuwait and the United Arab Emirates in retaliation for U.S. attacks on southern and western parts of Iran late on Tuesday, which reportedly killed 18 people and injured more than 100 others.
U.S. efforts to squeeze Iran’s economy through an oil blockade and sanctions are becoming increasingly difficult for Tehran to withstand, according to three senior Iranian sources. Washington is escalating pressure in hopes of securing concessions in future negotiations.
The resolution, sponsored by African countries and led by Togo, passed by 164 votes to one, with six abstentions. The United States was the only country to vote against it.
Food prices around the world rose sharply in August, reaching their highest level since late 2022 as extreme weather and disruptions caused by conflicts drove the surge according to the United Nations' Food and Agriculture Organization.
U.S. negotiators Steve Witkoff and Jared Kushner will visit Russia then Ukraine over the weekend, Russian state news agency TASS has reported, citing an unnamed source. Ukrainian President Volodymyr Zelenskyy has also said American envoys will visit the capitals of both countries.
Southern Chinese provinces were bracing for more torrential rain on Friday after Typhoon Saudel triggered severe flooding, swamping vehicles, collapsing at least one building and forcing mass evacuations.
President Donald Trump is leaving more than a paper trail from his time in office. The U.S. is now minting commemorative $1 coins for America’s 250th anniversary, featuring a portrait of the sitting president.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment