US President Donald Trump has announced what he described as the “biggest oil deal in world history”, claiming the agreement with Venezuela will give the United States majority control over 65 billion barrels of proven oil reserves.
US Secretary of State Marco Rubio said the arrangement is expected to attract nearly US$100 billion (about RM420 billion) in private investment into Venezuela, although details of the agreement have yet to be fully disclosed.
The deal would involve the development of oil fields in Venezuela, which holds the world’s largest proven crude reserves. The country has been under intense pressure from the Trump administration since Washington ousted and captured long-time leader Nicolas Maduro in January.
Maduro’s former vice-president, Delcy Rodriguez, was subsequently allowed to remain as interim leader, subject to conditions imposed by the United States.
Trump has previously made clear his interest in securing Venezuela’s vast oil resources for the US. In announcing the latest arrangement on Truth Social, he said the agreement would more than double America’s oil reserves.
There was no immediate confirmation from the Venezuelan government regarding the deal.
Trump said Rubio and US Defence Secretary Pete Hegseth negotiated the agreement with Rodriguez through a partnership involving private businesses.
“This Transaction will greatly strengthen the already growing relationship between Venezuela and the United States!” Trump wrote.
Rubio said the agreement reflected the administration’s “America First” approach by securing stable, low-cost energy supplies in the Western Hemisphere while potentially helping to reduce fuel prices for US consumers.
He added that the investment could generate thousands of well-paid jobs and support the reconstruction of Venezuela’s struggling economy.
Reports by Axios on Thursday said Washington and Caracas had been discussing arrangements involving around a dozen productive oil fields containing approximately 90 billion barrels of proven reserves. That figure would represent roughly one-third of Venezuela’s total proven reserves of about 300 billion barrels.
Under the reported arrangement, private companies, including American firms, would receive ownership stakes and develop the fields, while Venezuela would receive a greater share of oil revenues.
The agreement could also significantly increase US oil reserves at a time when America’s Strategic Petroleum Reserve is reportedly at its lowest level in around four decades.
Trump has further argued that increasing access to Venezuelan crude could help bring down petrol prices for American motorists, a politically sensitive issue ahead of the November midterm elections.
The administration has been encouraging American energy companies to expand their presence in Venezuela, although firms remain cautious due to the country’s ageing infrastructure and concerns stemming from previous government seizures of foreign-owned assets.
Chevron, the only US oil major still operating in Venezuela when Maduro was removed, reported in July that its Venezuelan operations had increased daily crude production to 280,000 barrels.
The company has also set a target of raising production by another 50% by the end of 2028, potentially making it a key player in any broader expansion of US-linked oil operations in Venezuela.
