US President Donald Trump has claimed that Washington is set to secure majority control over a large portion of Venezuela’s vast oil reserves through partnerships with the private sector.
In a post on Truth Social on Friday, Trump said the agreement was reached under the leadership of US Secretary of State Marco Rubio and Defense Secretary Pete Hegseth. He also claimed that the deal would require no US taxpayer money.
Venezuela’s interim President Delcy Rodríguez welcomed the initiative, saying it could attract major investment to the country, increase government revenues and help revive its struggling economy.
Under the proposed arrangement, companies would receive new rights to explore and produce oil from Venezuelan fields, with US firms expected to receive priority, according to sources cited by Reuters. The targeted areas include the Orinoco Belt and Lake Maracaibo.
However, Trump has not provided details about the structure of the agreement, the specific oil fields or companies involved, or how the United States would establish what he described as “majority control” over Venezuela’s oil reserves.
A list reviewed by Reuters indicates that the proposed fields are located primarily in the Orinoco Belt and Lake Maracaibo regions. Venezuelan officials are reportedly preparing to sign agreements with several companies next week to grant new exploration and production rights, with US companies expected to make up a significant share of the participants.
Rubio described the agreement as mutually beneficial for both countries. He said it could provide the United States with a stable supply of lower-cost crude oil and help reduce gasoline prices for American consumers.
For Venezuela, Rubio said the initiative could attract around $100 billion in private investment, create thousands of well-paid jobs and contribute to the reconstruction of the country’s economy.
Rodríguez said the agreement could facilitate the development of 17 strategic oil fields and substantially increase Venezuela’s crude production. She estimated that the government could receive approximately $209 billion in tax revenue as a result.
In a statement, Rodríguez said the investments would not only support the recovery and modernization of Venezuela’s oil industry but could also contribute to economic growth, regional energy security and greater balance in international energy markets.
Despite the ambitious projections, the legal and financial framework of the agreement remains unclear. Analysts say more details are needed to determine whether the proposed arrangement can overcome the longstanding obstacles to major investment in Venezuela.
Questions have also been raised over whether the US government has a legal basis under Venezuela’s constitution and its new hydrocarbons law to grant such concessions.
David Goldwyn, president of Goldwyn Global Strategies, said there was no precedent for the US government itself taking leases to operate oil fields.
He also questioned whether the new arrangement would be sufficient to overcome Venezuela’s longstanding barriers to foreign investment, including political uncertainty, unreliable electricity infrastructure, limited export capacity and extensive government control over the oil sector.
“It is difficult to see how this kind of arrangement would substantially increase investment,” Goldwyn said.
Venezuela has the world’s largest proven oil reserves, with more than 65 billion barrels. However, years of underinvestment, mismanagement and US sanctions have caused production to fall far below the country’s potential.
Venezuela currently produces roughly 1.25 million barrels of oil per day.
Since the United States detained Venezuelan President Nicolás Maduro in January, Washington has sought to secure a more stable supply of Venezuelan crude for US refineries while also encouraging greater American investment in the country’s oil industry.
The Trump administration is also facing pressure ahead of the November US midterm elections to ease consumer concerns over high energy prices. Increased and cheaper oil supplies from Venezuela could potentially help reduce some of that pressure.
Washington is also seeking to replenish the US Strategic Petroleum Reserve and is exploring several options, including potential crude-oil swaps with American producers.
Venezuela nationalized its oil industry in the 1970s, placing state-owned PDVSA at the center of the sector. Under former President Hugo Chávez, government control over the industry was strengthened further, with foreign oil companies required to operate through state-controlled joint ventures. Several assets were later taken over, including projects operated by ExxonMobil and ConocoPhillips.
Oil production declined even more sharply during Maduro’s rule.
The Trump administration’s latest initiative could therefore mark a dramatic expansion of US involvement in Venezuela’s oil industry. However, questions over the agreement’s legal framework, the ability to attract and implement large-scale investment, and how quickly production can actually be increased remain unresolved.
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