Trump Says US Strikes Major Venezuela Oil Deal With 55% Control Over 65 Billion Barrels

US President Donald Trump says Washington has reached a sweeping oil agreement with Venezuela that would give a US-backed venture effective control over the development and output of oil fields containing more than 65 billion barrels of proven reserves.

Trump described the arrangement as the “biggest oil deal in world history,” claiming it could more than double US oil reserves, increase supplies and eventually help bring down petrol prices.

But despite the scale of the announcement, the agreement does not mean the United States owns Venezuela, its territory or all of its oil reserves. Instead, the reported arrangement centres on a long-term commercial joint venture involving a specific group of Venezuelan oil fields.

What Is the US-Venezuela Oil Deal?

According to a US official familiar with the arrangement, the United States would work with an unnamed private operator to establish a new company in Venezuela.

The venture would receive rights to develop 17 oil fields with proven reserves of around 65 billion barrels.

Under the reported terms:

• Venezuela would grant the venture a 100-year concession to operate the fields.
• The US would have around 55% effective control of the venture's output through an ownership stake and rights to purchase oil at cost.
• The remaining interests would involve the Venezuelan side and the private operator.

The distinction is significant. The reported agreement concerns a defined portfolio of oil fields and a corporate venture — not US ownership of Venezuela or its entire petroleum industry.

Venezuela Could Receive Massive Investment

Venezuelan interim President Delcy Rodríguez welcomed the agreement, saying it could help revive the country's battered economy.

Her government says the arrangement could attract more than $100 billion in investment into Venezuela's oil sector and generate over $209 billion in tax revenue for the Venezuelan state.

The money would potentially be used to rebuild and modernise ageing oil infrastructure, expand production and create jobs.

US Secretary of State Marco Rubio has also presented the deal as mutually beneficial, arguing that private investment could help rebuild Venezuela's energy industry while increasing crude supplies available to American consumers.

Why Does Trump Want Venezuelan Oil?

The announcement comes as the Trump administration faces pressure over elevated US petrol prices.

The average US petrol price cited by AAA was around $4.09 per gallon, compared with $3.21 a year earlier.

The US Strategic Petroleum Reserve had also fallen below 300 million barrels in early August following substantial drawdowns during 2026.

The Venezuelan oil produced under the reported venture would be directed partly towards:

• Replenishing the US Strategic Petroleum Reserve
• Supporting US military requirements
• Increasing crude supplies available to the US market

The deal also comes against the backdrop of major disruption to global energy flows caused by the Iran conflict.

Before the conflict, roughly one-fifth of the world's petroleum passed through the Strait of Hormuz. Reduced traffic through the strategic waterway has heightened concerns about global oil supplies and prices.

Venezuela Has Oil — But Getting It Out Is the Problem

Venezuela possesses an estimated 303 billion barrels of crude reserves, the largest national reserve base in the world.

Yet the country produces only around 1% of global oil output.

The reason is not a lack of underground resources. Years of underinvestment and deterioration have left wells, pipelines, terminals, refineries and other infrastructure in need of extensive repairs.

That means the reported 65 billion barrels cannot simply be added to global supply overnight.

Experts say substantially increasing Venezuelan production could take years and would require major investment, technical expertise, financing and processing capacity.

International oil companies would also have to be willing to accept Venezuela's political, legal and commercial risks.

ExxonMobil CEO Darren Woods previously described Venezuela as “un-investable,” highlighting the concerns that could still deter major energy companies.

Political Transformation in Venezuela

The oil agreement follows a dramatic political shift in Venezuela.

The announcement comes after a US operation that captured former Venezuelan President Nicolás Maduro, who remains jailed in the United States and has pleaded not guilty to narcoterrorism and drug-trafficking charges.

Rodríguez subsequently moved to open Venezuela's oil industry to greater private participation, reversing a long-standing policy associated with the country's socialist government.

That political shift has created an opening for foreign investment — and potentially for much greater US involvement in Venezuela's energy sector.

Will the Deal Lower US Petrol Prices?

That remains uncertain.

The sheer size of Venezuela's reserves makes the agreement potentially transformative in the long term, but proven reserves are not the same as immediately available oil.

Rebuilding Venezuela's production infrastructure could take years, meaning the deal is unlikely to produce an immediate flood of crude into the US market.

For now, Trump's announcement represents an enormous strategic bet: Washington is seeking greater control over a major source of future oil production while Venezuela hopes US investment can revive an industry that has suffered years of decline.

If the promised investment and production increases materialise, the deal could reshape the global oil market. But the 65-billion-barrel figure represents potential — not an immediate increase in oil supply.