US Government Secures Major Stake in Venezuela’s Oil Reserves

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US Government Secures Major Stake in Venezuela's Oil Reserves

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The United States government has entered into an agreement to gain a majority stake in a substantial portion of Venezuela’s oil fields. President Donald Trump announced the deal on Friday, August 28, 2026, stating it would give the U.S. control over more than 65 billion barrels of proven oil reserves. This move comes after months of efforts to encourage American energy companies to invest in Venezuela’s oil sector, which had not materialized at the desired pace or scale.

The agreement, negotiated by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth with Venezuela’s interim President Delcy Rodríguez, establishes a new joint venture oil company. The U.S. government will hold a 55% controlling interest in this new entity, which will operate under 100-year contracts for 17 oil fields in Venezuela. The deal is expected to attract approximately $100 billion in private investment into Venezuela’s oil industry and could generate over $209 billion in tax revenue for the Venezuelan government.

The primary objective for the U.S. is to secure a stable and low-cost oil supply to help reduce domestic gasoline prices and replenish the Strategic Petroleum Reserve. Venezuela possesses the world’s largest proven oil reserves, estimated at 303 billion barrels. This agreement follows a U.S. military operation earlier in 2026 that resulted in the removal of former Venezuelan President Nicolás Maduro and the installation of an interim government. While the deal is touted as a “win-win” for both nations, it faces potential resistance in both Venezuela and the U.S. The involvement of the Pentagon’s Office of Strategic Capital in structuring the investment through penny warrants, aiming for equity ownership without significant upfront capital, has also been reported.

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