WASHINGTON, 29 August, 2026 (Kamran Raja): U.S. President Donald Trump has announced an unprecedented agreement under which American interests will gain majority control of more than 65 billion barrels of Venezuela’s proven oil reserves, as Washington seeks to revive the country’s struggling energy sector and secure additional crude supplies for U.S. refineries. Trump said the agreement had been secured through a partnership with private businesses and would come at no cost to American taxpayers. The announcement followed weeks of negotiations between the United States and Venezuelan authorities over long-term access to oil fields and increased investment in Venezuela’s energy industry.U.S. Secretary of State Marco Rubio described the agreement as a “win-win” for both countries, saying it would provide the United States with a stable and lower-cost source of crude oil while helping reduce gasoline prices. For Venezuela, Rubio said the agreement could attract nearly $100 billion in private investment, create thousands of high-paying jobs and contribute to the reconstruction of the country’s economy.Venezuela’s interim leader Delcy Rodriguez welcomed the agreement, saying the deal would significantly increase oil production through the development of 17 strategic fields. She said the projects could generate around $209 billion in tax revenue for the Venezuelan government.

Venezuela possesses the world’s largest proven oil reserves but currently produces only about 1.25 million barrels of crude per day, well below its potential. Years of underinvestment, mismanagement and U.S. sanctions have severely weakened the country’s oil industry. Under the emerging arrangement, Venezuelan authorities are expected to sign agreements next week granting new exploration and production rights to several companies, particularly U.S. firms. Sources have indicated that a lease-based model was under consideration, under which oil fields could be auctioned to American producers.However, the agreement could face legal and constitutional challenges in Venezuela, where the state retains control over key activities in the oil sector. Trump did not disclose the precise structure of the deal, the companies involved or how U.S. majority control over the reserves would be exercised.A list reviewed by Reuters indicates that the oil fields involved are located mainly in Venezuela’s Orinoco Belt and Lake Maracaibo regions. The agreement marks a major expansion of the United States’ potential role in Venezuela’s energy industry and reflects the Trump administration’s efforts to increase oil supplies, attract private investment and strengthen energy security while seeking to ease fuel prices for American consumers.