Trump Announces Major US Stake in Venezuela’s Vast Oil Reserves

WASHINGTON, Aug 29: US President Donald Trump has announced what he described as a landmark agreement that would give American interests majority control over a large portion of Venezuela’s proven oil reserves, potentially reshaping the energy and economic relationship between Washington and Caracas.

Trump said the arrangement covers 65 billion barrels of proven petroleum reserves and called it the “biggest oil deal in world history.” The announcement was made on his Truth Social platform, where he said the agreement would significantly expand US access to Venezuelan crude.

US Secretary of State Marco Rubio said the arrangement could bring nearly $100 billion in private investment to Venezuela, helping finance the rebuilding of its economy and supporting employment.

The agreement was reportedly negotiated by Rubio and US Defence Secretary Pete Hegseth with Venezuelan interim leader Delcy Rodriguez through a partnership involving private companies. The Venezuelan government, however, had not immediately issued an official confirmation of the deal.

Venezuela possesses the world’s largest proven crude oil reserves, estimated at around 300 billion barrels. Securing greater access to those resources has been a key objective of the Trump administration as it seeks to strengthen domestic energy supplies and reduce exposure to disruptions in international oil markets.

Trump said the arrangement would more than double US oil reserves and argued that increased Venezuelan production could eventually contribute to lower fuel prices for American consumers.

Rubio said the agreement reflected the administration’s “America First” approach to foreign policy, claiming it would provide the United States with stable and lower-cost energy supplies while supporting economic recovery in Venezuela.

According to a report by Axios, Washington and Caracas had been discussing arrangements involving about a dozen productive oil fields containing roughly 90 billion barrels of proven reserves. Under the reported framework, private companies, including US firms, would invest in and develop the fields, while Venezuela would receive a larger share of the resulting oil revenue.

The reported agreement comes as Venezuela remains under close US scrutiny following the removal and capture of former President Nicolas Maduro in January. Rodriguez subsequently remained in office as interim leader amid strong pressure from Washington.

Trump has repeatedly expressed interest in expanding US involvement in Venezuela’s energy sector. His administration has encouraged American companies to invest in the country’s oil industry, although concerns remain over ageing infrastructure, production difficulties and Venezuela’s previous nationalisation of foreign-owned assets.

Chevron, the only major US oil company that continued operating in Venezuela when Maduro was removed, has already increased its crude production in the country. The company said in July that daily output had reached about 280,000 barrels and that it intended to raise production by another 50 per cent by the end of 2028.

The proposed investment also comes at a politically sensitive time for Trump, with US consumers facing concerns over fuel costs and global energy supplies. The administration has linked expanded access to Venezuelan crude with its broader effort to increase energy security and contain gasoline prices.

Details about the ownership structure, participating companies, investment commitments and the timeline for developing the fields were not immediately disclosed. The absence of a confirmation from Caracas also leaves questions about how the proposed arrangement will be implemented.

If carried out as outlined by the US administration, the deal could give American companies a significantly larger role in one of the world’s biggest petroleum-producing regions while providing Venezuela with substantial foreign capital for rebuilding its energy infrastructure and wider economy.