Trump says US is taking partial control of Venezuela's vast oil reserves

Trump notes US is taking partial control of Venezuela's vast oil reserves.

Key points

• Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and throughout the world.
• For Venezuela, Rubio remarked the agreement would bring almost $100 billion in private investment, backing thousands of high-paying jobs and support rebuild the country's economy.
• Since removing Maduro, Washington has been trying to secure a stable flow of Venezuelan crude for US refineries while promoting American investment in the country's oil industry.
• Venezuela nationalised its oil industry in the 1970s, putting state-run PDVSA at its center.
• The South American nation's leader welcomed the agreement, saying it would boost the economy and administration revenue.

Trump notes US is taking partial control of Venezuela's vast oil reserves. Reuters Published August 29, 2026 Updated August 29, 2026 09: 24am. Join our Whatsapp Channel. Add Dawn as a trusted source.

United States President Donald Trump on Friday confirmed an unprecedented push to take control of a fifth of Venezuela's vast oil reserves, betting that American businesses can revive the Opec nation's battered energy industry while delivering a new source of crude to support bring down US fuel costs.

Trump provided few details regarding the agreement, saying only that the US had secured majority control of more than 65 billion barrels of Venezuela's proven oil reserves through a partnership with private business.

Notably, the South American nation's leader welcomed the agreement, saying it would boost the economy and administration revenue.

Notably, the new accord would represent a dramatic expansion of the US role in Venezuela's oil industry as the Trump administration seeks to revive the country's production and secure more crude for US refineries.

Venezuela holds the world's largest proven oil reserves but produces only regarding 1.25 million barrels per day, far below its potential after years of underinvestment, mismanagement and sanctions. Rubio calls accord a win-win.

"At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority US control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer, " Trump wrote on Truth Social.

Notably, the announcement followed weeks of US-Venezuelan negotiations over a accord that would provide American firms long-term access to a group of Venezuelan oilfields and guarantee the resulting crude supply to the United States.

Venezuelan authorities are preparing to sign agreements next week granting new oil exploration and production rights to a number of firms, particularly US firms.

Sources have informed Reuters that a lease model was under consideration, with fields potentially auctioned to US producers, but the arrangement could face legal and constitutional challenges in Venezuela, where the state retains control over core oil industry activities.

Trump did not disclose the structure of the agreement, the fields or firms involved or how the United States would exercise majority control over the reserves. A list seen by Reuters demonstrates the fields are in the Orinoco Belt and Lake Maracaibo regions.

Rubio described the agreement as a win for both countries, saying on X that it would secure stable, low-cost oil for the United States and support lower gasoline costs.

Rodriguez, who became interim leader after the US captured President Nicolas Maduro in January, remarked late on Friday that the agreement would allow for a significant rise in production through the development of 17 strategic fields and result in tax revenue for the country totaling $209 billion.

"These investments will contribute not only to the recovery and modernization of our industry, but also to our countrys economic growth, the energy security of our hemisphere, and greater balance in international markets, " she remarked in an official note. Legal basis, financial structure unclear.

Analysts remarked they needed to see more details on the agreement's legal and financial structure before assessing whether it could attract significant investment.

As developing the infrastructure needed to produce, transport and refine Venezuela's heavy crude could take years, additionally unclear is whether the agreement will lower gasoline rates in the short term.

David Goldwyn, president of Goldwyn Global Strategies, remarked it was unclear whether a US administration lease would have a legal basis under Venezuela's constitution and its new hydrocarbons law, adding that there is "no precedent for having the US government enter into a lease to operate oil fields".

Goldwyn additionally questioned whether the plan would address the obstacles that have deterred investment in Venezuela for years.

"It is hard to see how this kind of arrangement would accelerate investment at any material scale, " he remarked, citing political uncertainty, an inadequate power grid, limited export capacity and administration discretion over the industry.

Since removing Maduro, Washington has been trying to secure a stable flow of Venezuelan crude for US refineries while promoting American investment in the country's oil industry. The Trump administration is under pressure ahead of midterm elections in November to mollify consumer reservations over rising gasoline costs. Cheaper oil supplies and expanded output could support. The U.S. Additionally has been looking for solutions to replenish its Strategic Petroleum Reserve, the nation's oil stockpile, including the possibility of crude swaps with U.S. Producers.

Venezuela nationalised its oil industry in the 1970s, putting state-run PDVSA at its center. Under then-President Hugo Chavez, the administration tightened control, forcing foreign producers into state-led joint ventures and afterwards expropriating assets, including projects operated by ExxonMobil and ConocoPhillips. Under Maduro's rule Venezuela's production fell sharply.

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