Venezuelan interim President Delcy Rodriguez announced a 'historic' oil agreement with the United States, as revealed during an evening address on state broadcaster VTV. The deal, which was also announced by President Donald Trump on Truth Social, is set to last 25 years and initially targets crude production of more than 1.5 million barrels per day, focusing on the development of 17 strategic oilfields. Rodriguez emphasized that this production figure pertains solely to the bilateral agreement between Venezuela and the United States, and she projected the deal could generate over $200 billion in revenue for Venezuela [1].
President Trump described the agreement as 'the biggest oil deal in world history,' stating that the U.S. had secured majority control of more than 65 billion barrels of Venezuela's proven oil reserves, which he noted are the largest in the world. Trump asserted that the deal would more than double American oil reserves, greatly increase the U.S. oil supply, and substantially lower gas prices for Americans in the long term. He also highlighted that the agreement was reached at no cost to the American taxpayer, involving Secretary of State Marco Rubio, Secretary of War Pete Hegseth, Rodriguez, and private businesses [1].
Secretary of State Marco Rubio called the agreement a 'huge win' for both countries, emphasizing that it would secure stable reserves and low-cost oil in the Western Hemisphere while lowering U.S. gas prices. Rubio further stated that the deal would bring nearly $100 billion in private investment to Venezuela, support thousands of high-paying jobs, and help rebuild the country's economy. Rodriguez added that the initial production target is part of broader plans to develop eight greenfield oil blocks as part of a wider energy expansion, while maintaining Venezuela's ownership and sovereignty over its natural resources [1].
The agreement received positive feedback from some members of the oil industry, including oil trader Phil Flynn, who argued that it could lower prices for years and that U.S. technology and investment would play a key role in Venezuela's energy sector recovery [1].
CONCLUSION
The 25-year oil agreement between Venezuela and the United States is positioned as a transformative deal for both nations, with significant implications for global oil supply and prices. With ambitious production targets, major investment commitments, and assurances of Venezuelan sovereignty, the deal is expected to have a high market impact and has been met with optimism from industry stakeholders.