U.S. President Donald Trump announced on Friday that his administration has secured a comprehensive agreement with Venezuela that, if actualized, could grant the U.S. access to substantial untapped oil reserves in the South American nation at a reasonable cost.
According to Trump’s social media post, the agreement was brokered by U.S. Secretary of State Marco Rubio, U.S. Secretary of War Pete Hegseth, and Venezuela’s interim President Delcy Rodríguez. Trump touted the deal as “THE BIGGEST OIL DEAL IN WORLD HISTORY.”
Venezuela’s government, in a statement, disclosed that the agreement entails the development of 17 fields with a proven potential of 65 billion barrels. The deal is expected to attract $100 billion in investment into Venezuela’s oil industry and generate over $209 billion in taxes for Caracas.
Rodríguez expressed optimism about the deal’s impact on Venezuela’s economic revival in a message on Telegram. The terms of the agreement allow the U.S. to collaborate with an undisclosed private operator in Venezuela to establish a new private company tasked with managing the reserves, as per a U.S. official familiar with the deal.
The official, speaking on condition of anonymity, revealed that the company has been granted 100-year rights by Rodríguez to develop the oil fields. The U.S. will hold a 55% stake in the new private company, entitling it to an ownership share and the ability to purchase oil at cost, making it the second-largest corporate holder of proven reserves after Saudi Aramco.
This announcement follows a U.S. military operation, directed by Trump, conducted about nine months ago to apprehend Venezuela’s then-president Nicolás Maduro on federal narcoterrorism and drug trafficking charges.
In another development, Trump is under increasing pressure to address soaring gas prices amid the ongoing conflict in Iran. The U.S. has dipped into its strategic petroleum reserves, which have plummeted to under 300 million barrels, down by over 100 million barrels since the beginning of 2026. The U.S.-Israel campaign against Iran has led to a significant slowdown in Gulf oil transportation through the Strait of Hormuz, a vital route for about 20% of global petroleum shipments.
As of Friday, the average gas price in the U.S. was approximately $4.09 per gallon, compared to $3.21 per gallon at the same time last year, as reported by AAA. Expectations for an immediate substantial drop in gas prices due to the agreement with Venezuela are cautioned against by experts, who highlight the time and investment needed to enhance oil production infrastructure in the country.
Encouraging major American oil companies to reenter Venezuela could face challenges given the political instability and decades of deteriorated infrastructure. Shortly after Maduro’s removal, Trump convened oil industry leaders at the White House, urging them to swiftly return to Venezuela. While there was interest, executives expressed hesitancy due to past experiences in the region.
ExxonMobil’s CEO, Darren Woods, referred to Venezuela as “un-investable” at the time. Conversely, Trump has asserted that his administration has brought stability to the nation. He has criticized past Venezuelan administrations for nationalizing foreign assets, including those of American oil companies.
Rodríguez, upon assuming power, initiated legislation opening Venezuela’s oil sector to privatization, reversing a long-standing socialist policy. Senator Rubio highlighted the agreement’s potential to attract billions in private investments to Venezuela and lower gas prices in the U.S., deeming it a significant win for both nations.
Oil purchased from the new company will be utilized to replenish the U.S. strategic petroleum reserve and for military purposes. Venezuela is home to one of the world’s largest oil reserves, estimated at 303 billion barrels, constituting about 17% of global supply, as per the U.S. Energy Information Administration. While the reserves are vast, the country’s oil production remains limited due to aged infrastructure, with Venezuela currently contributing just 1% to global oil output.
