Trump hails 'historic' deal for US to control 65bn barrels of Venezuela's oil

29 August 2026, 00: 54 BST. Updated 3 hours ago.

Key points

• Trump remarked Rubio and Defence Secretary Pete Hegseth had reached the agreement with Venezuela's leadership "through a partnership with private business".
• The US has struck a accord with Venezuela to control more than 65 billion barrels of its proven oil reserves, Donald Trump unveiled.
• US Secretary of State Marco Rubio called the oil accord "a huge win for both the American and Venezuelan people".
• "For the Venezuelan people, this deal will bring nearly $100bn (£74bn) in private investment, support thousands of high-paying jobs and drive the reconstruction of Venezuela's economy, " he remarked.
• David Goldwyn, president of energy consultancy Goldwyn Global Strategies, remarked there was "no precedent" for the US administration entering into a lease to operate Venezuelan oil fields.

Notably, the US has struck a accord with Venezuela to control more than 65 billion barrels of its proven oil reserves, Donald Trump unveiled.

For context, the US president wrote that the agreement would more than double American oil reserves and "substantially lower Gas Prices for all Americans".

Venezuela's interim President Delcy Rodríguez hailed the accord as one that would assist her nation's economic revival.

But some analysts have reacted with scepticism, including questioning whether the accord would address long-running obstacles that have deterred investment in Venezuela's oil industry.

Trump has lately been under domestic pressure to tame petrol costs. It have spiked due to the Iran war.

After the US captured its then-President Nicolás Maduro in January, ostensibly to stand trial on drug charges in New York, he vowed to tap into Venezuela's reserves, the world's largest.

US Secretary of State Marco Rubio called the oil accord "a huge win for both the American and Venezuelan people". Few details were published.

He did not elaborate on the partnership or describe feasible commitments and terms for the US in the agreement, but he asserted the agreement was reached "at no cost to the American Taxpayer".

Under the accord the US administration will retain 55% control of a joint venture with an "experienced private operator in Venezuela", a US official informed the BBC's US partner CBS News.

Meanwhile, the Wall Street Journal documented on Friday that US energy firms Chevron and Halliburton were nearing deals to invest billions in overhauling the infrastructure in Venezuela's oil fields, numerous of which have not been developed.

It's not clear if such a move would violate Venezuela's constitution or its hydrocarbons law, he informed the Reuters news agency.

"It is hard to see how this kind of arrangement would accelerate investment at any material scale, " he continued, citing Venezuela's political uncertainty, fragile power grid, and limited export capacity.

Venezuela's interim president remarked in an official note that the agreement would have "a significant impact on our nation's revival".

As well as "an investment of more than $100bn and more than $209bn in taxes" for Venezuela, Rodríguez stated, the accord calls for the development of 17 strategic oil fields with a proven potential of 65 billion barrels.

"These investments will contribute not only to the recovery and modernisation of our industry, but also to our country's economic growth, the energy security of our hemisphere and greater balance in international markets, " she remarked.

Oil, gas and mineral lawyer Alexander Kuiper informed the BBC the agreement could be "very significant" but expressed some caution.

"This is definitely a headline to help with oil prices, " he remarked, but went on: "What we don't know, is whether or not those reserves turn into actual investment, and how long that investment takes to produce results."

Asked how it would affect oil rates in practice, Kuiper stated: "There isn't a switch that you can flip – contracts and agreements have to be put in place. This could take a long time, but it's an important first step."

Delcy Rodríguez – Maduro's former vice-president. This person the US backed after his capture – provided the venture a 100-year concession to operate in the oil fields, the unnamed US official informed CBS.

Trump offered few specifics of the highly unusual agreement. It apparently grants the US direct governance over a foreign country's sovereign national resources.

In practice, the accord would additionally appear to be wider in scope than the US-led Coalition Provisional Authority's control over Iraq's oil revenues after Saddam Hussein was ousted in an American-led invasion in 2003.

But it is unclear whether the Venezuela agreement could face legal and constitutional challenges in the South American nation. The official text of the agreement between Washington and Caracas has not been published.

Venezuela has the largest proven oil reserves in the world – an estimated 303 billion barrels.

Nevertheless, production has plummeted since its peak in the late 1990s, in part due to a tightening of controls over its state-run oil firm and US sanctions targeting its main economic lifeline.

Hours after US special forces captured Maduro and his wife, Cilia Flores, in a raid on the Venezuelan capital, Trump remarked the US would indefinitely control the sale of the country's oil.

He has additionally maintained the rights to Venezuela's oil after saying that the country had previously "unilaterally seized and sold American oil, American assets and American platforms, costing us billions and billions of dollars".

His framing of the accord as part of efforts to drive down domestic petrol costs comes as the global cost of oil has jumped up significantly as supply via the Strait of Hormuz in the Persian Gulf has effectively been stymied – spurring discontent ahead of the US midterm elections in November.

Nevertheless, Venezuela's oil reserves are produced up of so-called "heavy, sour" oil. It is harder to refine and applied for making diesel and asphalt, while the US typically produces "light, sweet" oil useful for making petrol.

Trump has asked US oil firms to invest at least $100bn (£75bn) to restore the country's oil industry.

Taken together, the developments around trump hails ' historic' deal for US to control 65bn barrels of Venezuela' s point to a situation that is still moving, and the coming days should bring more clarity.