U.S. Reaches Major Oil Deal with Venezuela

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U.S. Reaches Major Oil Deal with Venezuela

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On August 28, 2026, President Donald Trump announced a significant oil agreement with Venezuela, which he lauded as “THE BIGGEST OIL DEAL IN WORLD HISTORY.” The deal grants the United States majority control over 65 billion barrels of Venezuela’s proven oil reserves. This move comes after U.S. forces captured then-President Nicolás Maduro in January 2026.

The agreement, negotiated by U.S. Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuelan Acting President Delcy Rodríguez, involves the creation of a new company. This new entity, formed by the U.S. government and an unnamed private operator in Venezuela, has been granted 100-year rights to develop 17 untapped oil fields. The U.S. will hold a 55% effective output of this new company, encompassing both an ownership stake and the right to purchase oil at cost. The oil acquired by the U.S. will be directed towards its strategic oil reserves and military.

Acting President Rodríguez stated that the deal is a step towards economic recovery for Venezuela, potentially attracting $100 billion in investment into the country’s oil industry and generating over $209 billion in taxes for Caracas. However, many details of the agreement, including the identity of the private operator and how the necessary investments will be covered, remain unclear.

The announcement has sparked criticism from both hard-liners and opposition forces within Venezuela. Some, like former ruling party member William Rodríguez, have denounced it as “the greatest oil betrayal in the history of the country,” citing a lack of parliamentary discussion and potential constitutional violations. Opposition figures, while acknowledging the need for foreign investment to revive Venezuela’s oil industry, have expressed doubts due to concerns about government “opacity and corruption.” Venezuela possesses the world’s largest proven crude oil reserves, estimated at approximately 303 billion barrels as of 2023, with much of it being extra-heavy crude requiring specialized processing.

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