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US and Venezuela Forge 'Historic' Oil Deal
🇵🇾 Paraguay /Economy & Trade

US and Venezuela Forge 'Historic' Oil Deal

From ABC Color · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

News Sources not specified New plan
  • The US and Venezuela have announced a historic oil agreement granting Washington control over more than 20% of Venezuela's crude reserves.
  • US companies will develop 17 strategic fields, involving an investment exceeding $100 billion, aiming to boost US reserves and reduce gasoline prices.
  • The deal, described by President Trump as the "biggest oil deal in world history," aims to cement relations between the two administrations.

The United States and Venezuela have inked a "historic" oil deal that will see Washington control over 20% of the South American nation's vast crude reserves. The agreement, announced nearly nine months after former President Trump indicated US energy companies would enter Venezuela, marks a significant deepening of ties between the two administrations.

the biggest oil deal in world history

— Donald TrumpDescribing the oil agreement between the US and Venezuela.

Under the terms of the deal, US companies are slated to develop 17 strategic oil fields within Venezuela, home to the world's largest proven crude reserves. This development is expected to attract an investment of over $100 billion. President Trump hailed the agreement as "the biggest oil deal in world history," predicting it would more than double US proven oil reserves. Currently, the US holds approximately 46.4 billion barrels of crude and condensate, while Venezuela boasts reserves of over 303 billion barrels.

will mean the development of 17 strategic fields in the country with the largest proven crude reserves in the world and an investment of more than 100 billion dollars.

— Delcy RodríguezDetailing the scope of the oil deal.

The accord, which involves approximately 65 billion barrels of Venezuela's reserves, represents more than 21% of the country's total. Venezuelan interim president Delcy Rodríguez stated that the operations are projected to generate over $209 billion in taxes for the state. Trump emphasized that the deal would not burden US taxpayers and would help lower gasoline prices, particularly amid rising costs attributed to the war in Iran.

We are going to have our very big American oil companies, the biggest in the world, go in, spend billions of dollars, repair the severely deteriorated infrastructure, the oil infrastructure, and start making money for the country.

— Donald TrumpStating his intentions for US oil companies in Venezuela prior to the deal.

While details remain scarce, reports suggest Chevron, already operating in Venezuela, could be among the US firms involved. Trump had previously stated that US oil companies would "spend billions of dollars, repair the severely deteriorated infrastructure... and start making money for the country." This agreement appears to be a significant step in that direction, aiming to leverage Venezuela's immense oil potential for mutual benefit and to stabilize global energy markets.

We need access to the oil and other things from your country that allow us to rebuild your country.

— Donald TrumpExplaining the US need for Venezuelan resources.
About this summary

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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