Trump claims 'historic oil deal' with Venezuela

Donald Trump announced an official agreement between the United States and Venezuela concerning oil, calling it the "biggest deal in history" on his social media platform Truth. The agreement reportedly gives the U.S. majority control over 65 billion barrels of Venezuelan oil reserves. This is a substantial increase, as the U.S. currently has access to only 45 billion barrels, while Venezuela holds the world's largest reserves at 303 billion barrels.

The influx of oil is expected to replenish the U.S. Strategic Petroleum Reserve, which has been depleted by releases aimed at containing the Hormuz crisis. However, significant questions remain about the agreement's implementation. A White House official told CNN that the deal will ensure the U.S. receives "55% of the actual production of a new private joint venture, destined to become the second-largest private oil company in the world by volume of reserves."

With U.S. support, Venezuela's interim president, Delcy Rodriguez, has granted a private company 100-year exploitation rights for the oil fields. The identity of this private joint venture is currently unknown, though companies like Chevron, Repsol, and Eni, which have a presence in Venezuela, are considered potential candidates. An Italian energy group spokesperson stated they are working with Venezuelan counterparts and authorities to help revive the country's energy sector but could not comment on next steps.

Another key unresolved issue is the role of PDVSA, Venezuela's state oil company. Under Nicolas Maduro, PDVSA was required to hold at least 60% in "mixed companies." This agreement, however, does not mention PDVSA's role, raising questions about Venezuela's future control over its resources. Rodriguez's official statement mentioned the 65 billion barrels, 17 extraction fields, and $100 billion in investments for Caracas. If this deal proceeds as described, it would mark the first time Venezuela cedes control of its oil fields to a private company influenced by the United States. Amidst these developments, Venezuelan economic media reports suggest the country is considering leaving OPEC, a founding member since 1960, due to its strengthened ties with the U.S.