The President of the United States, Donald Trump, on Friday announced that Washington has entered into an oil agreement with Venezuela, saying it was negotiated by Secretary of State Marco Rubio, Secretary of War Pete Hegseth and Venezuelan interim leader Delcy Rodríguez. Taking to social media, Trump described the agreement as the biggest oil deal ever in history.
“This transaction will greatly strengthen the already growing relationship between Venezuela and the United States!” the post read.
Venezuela’s interim President Delcy Rodriguez welcomed the deal, which is expected to bring about $209bn to the state’s treasury. Officials are preparing to sign agreements next week granting new oil exploration and production rights to a number of companies, particularly US firms
The structure of the oil agreement, including the oilfields involved, the companies participating and how the U.S. would exercise control over the reserves, remains unclear.
Rubio praised President Trump for his bold foreign policy that is driving America First wins, securing stable reserves and low-cost oil in the hemisphere and lowering gas prices at home.
“For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela’s economy,” Rubio said in a post on X.
The deal gives the United States majority control of more than 65 billion barrels of proven petroleum reserves. It should bring nearly $100 billion in private investment to Venezuela.
Venezuela has the world’s largest proven oil reserves. Its government has operated under intense pressure and close scrutiny from the Trump administration since the U.S. ousted and captured longtime ruler Nicolás Maduro in January. Delcy Rodríguez regained his position and served as the interim leader so long as she does the U.S. like.
Sources said earlier this week that a lease model was being considered under which Venezuela’s oilfields could be auctioned to U.S. producers. However, such an agreement could face legal and constitutional challenges in Venezuela, where the state retains control over key oil industries.
According to analysts, the legal and financial details of the agreement remain unclear. They cautioned that any impact on gasoline prices could take years, as Venezuela’s oil infrastructure would require major investment to increase production, transport heavy crude and expand refining capacity.
They also raised questions on whether a U.S. government-backed deal would have a legal basis under Venezuela’s constitutional hydrocarbons law.
The U.S. has long been seeking to secure stable supplies of Venezuelan crude oil for U.S. refineries and encourage American investment in the country’s energy industry. Ahead of the midterm elections in November, the Trump administration is also facing mounting pressure over concerns about rising gasoline prices.
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