US President Donald Trump has announced an unprecedented plan to expand American control over Venezuela’s massive oil reserves, saying the agreement could help revive the country’s struggling energy industry and increase crude supplies for US refineries.

Trump said on Friday that the United States had secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through a partnership with private businesses. The announcement marks a major potential expansion of the US role in Venezuela’s oil sector.

The agreement comes as the Trump administration seeks to increase access to Venezuelan crude, encourage American investment and put downward pressure on gasoline prices in the United States.

Venezuela possesses the world’s largest proven oil reserves, but its production remains far below its potential. Years of underinvestment, economic turmoil, mismanagement and international sanctions have severely weakened the country’s energy infrastructure.

Venezuela currently produces roughly 1.25 million barrels of oil per day, according to the information provided, despite possessing enormous reserves that could support substantially higher production.

Trump Says Deal Will Cost US Taxpayers Nothing

Trump announced the agreement on Truth Social, crediting Secretary of State Marco Rubio and Secretary of War Pete Hegseth for working with Venezuelan interim leader Delcy Rodriguez and private businesses.

The US president said the arrangement would give American interests majority control of more than 65 billion barrels of proven Venezuelan oil reserves without cost to American taxpayers.

However, Trump did not provide detailed information about the agreement’s legal structure, the specific oil fields involved, the companies participating or how majority US control would operate in practice.

The announcement followed weeks of negotiations between Washington and Caracas over long-term access to Venezuelan oil fields.

Venezuelan authorities are reportedly preparing agreements that would provide new exploration and production rights to several companies, particularly American energy firms.

Venezuela Could Receive Major Investment

Venezuelan officials have welcomed the agreement, arguing that greater foreign investment could help rebuild the country’s oil industry and generate additional government revenue.

Rodriguez said the plan would support increased production through the development of 17 strategic oil fields. She also said the projects could eventually generate around $209 billion in tax revenue for Venezuela.

US Secretary of State Marco Rubio described the arrangement as a potential win-win agreement, arguing that it could provide the United States with stable and lower-cost oil while helping Venezuela attract investment and rebuild its economy.

Rubio said the plan could bring nearly $100 billion in private investment to Venezuela and create thousands of high-paying jobs.

For Washington, increased Venezuelan production could provide an additional source of crude for US refineries. For Caracas, new investment could help modernize aging infrastructure, increase production and strengthen government finances.

The proposed arrangement could dramatically change the role of American companies in Venezuela’s energy industry.

Sources familiar with the negotiations have indicated that a lease-based model was among the structures being considered. Under such a system, oil fields could potentially be offered to US producers through auctions or other arrangements.

However, significant legal questions remain.

Venezuela’s constitution and hydrocarbons laws give the state a central role in the country’s oil industry. Any agreement that grants extensive control over oil fields to foreign companies could therefore face legal or constitutional challenges.

A list reviewed by Reuters reportedly identifies potential fields in the Orinoco Belt and Lake Maracaibo regions, two of Venezuela’s most important oil-producing areas.

The exact fields and participating companies have not yet been publicly disclosed.

Despite the size of Venezuela’s reserves, analysts caution that significantly increasing production will not happen overnight.

Much of Venezuela’s oil is heavy crude, which requires specialized infrastructure and refining capacity. Years of inadequate investment have also left pipelines, power systems, production facilities and export infrastructure in need of substantial upgrades.

Developing these systems could take years and require billions of dollars in investment.

David Goldwyn of Goldwyn Global Strategies said analysts would need to see more details about the agreement’s financial and legal framework before determining whether it could attract investment on a meaningful scale.

He also questioned whether a US government lease arrangement would have a clear legal foundation under Venezuelan law.

Political uncertainty, unreliable infrastructure, limited export capacity and government control over the energy sector have historically discouraged international oil companies from making large investments in Venezuela.

These challenges could make it difficult for the new arrangement to deliver rapid increases in production.

One of the biggest questions surrounding the agreement is whether increased Venezuelan oil production can actually reduce gasoline prices for American consumers.

Trump’s administration is facing pressure over energy costs ahead of the US midterm elections in November. Increasing global oil supplies could eventually help ease prices, but Venezuelan production would need time to recover.

Even if American companies receive expanded access to Venezuelan fields, producing additional crude, transporting it and processing the heavy oil at US refineries would require significant investment.

As a result, any impact on US gasoline prices is likely to depend on how quickly Venezuela can increase production and how much additional crude reaches the American market.

Venezuela nationalised its oil industry in the 1970s, placing the state-run PDVSA at the centre of the sector.

Under former President Hugo Chavez, Caracas strengthened government control over oil operations and required foreign producers to participate in state-led joint ventures. Some foreign-owned assets were later expropriated, including projects involving major US companies.

The resulting relationship between Venezuela and American energy companies became increasingly complicated.

The country’s oil production subsequently suffered from economic instability, declining investment, operational problems and US sanctions.

The latest agreement represents a potential shift in that relationship by opening the door to significantly greater US participation in Venezuela’s energy sector.

The deal is also significant beyond oil production.

The United States has been seeking a more reliable supply of crude for domestic refineries while encouraging American businesses to invest in Venezuela.

Washington has also been examining ways to replenish the US Strategic Petroleum Reserve, the country’s emergency crude oil stockpile, including potential oil swaps involving domestic producers.

Greater access to Venezuelan crude could therefore serve multiple US objectives: strengthening energy security, increasing crude supplies, supporting American energy companies and potentially reducing pressure on fuel prices.

For Venezuela, the stakes are equally high. Increased foreign investment could provide much-needed capital for rebuilding its oil industry and generating government revenue.

However, the agreement’s ultimate impact will depend on its legal structure, financing arrangements, participating companies and the speed at which Venezuela can restore production capacity.

For now, Trump’s announcement represents a major proposed shift in US-Venezuela energy relations, but many important details remain unresolved.