Trump announces ‘biggest oil deal in world history’ with Venezuela

President Donald Trump announced on Thursday that the United States has secured a deal with Venezuela granting majority control over more than 65 billion barrels of the country's proven oil reserves. The agreement, described by Trump as the "biggest oil deal in world history," is expected to revitalize Venezuela’s struggling energy sector while expanding U.S. access to crude oil.

In a post on Truth Social, Trump stated the deal would "more than double American oil reserves" and "substantially lower gas prices for all Americans." He credited Secretary of State Marco Rubio and Secretary of War Pete Hegseth for negotiating the agreement with Venezuelan Interim President Delcy Rodriguez. The Trump administration framed the deal as cost-free to U.S. taxpayers, though financial details remain undisclosed.

Rodriguez welcomed the agreement, stating it would inject approximately $209 billion into Venezuela’s treasury. The deal follows weeks of negotiations aimed at granting U.S. companies long-term access to Venezuelan oilfields while ensuring crude supplies to American refineries. Venezuelan officials plan to sign agreements next week that would grant new exploration and production rights to several firms, particularly U.S.-based companies.

While specifics of the arrangement remain unclear, Reuters previously reported that a lease model was under consideration, with fields potentially auctioned to U.S. producers. However, legal and constitutional challenges could arise, as Venezuela’s constitution vests control over core oil activities in the state.

Venezuela holds the world’s largest proven oil reserves but currently produces only 1.25 million barrels per day—a fraction of its potential due to years of underinvestment, mismanagement, and international sanctions. The Trump administration’s involvement marks a significant expansion of U.S. influence in Venezuela’s oil sector as Washington seeks to revive production and secure additional crude for domestic refineries.

Neither Trump nor administration officials disclosed the structure of the agreement, the specific oilfields involved, or the companies participating. Secretary of State Marco Rubio framed the deal as mutually beneficial, asserting on X that it would ensure stable, low-cost oil for the U.S. while bringing nearly $100 billion in private investment to Venezuela. He claimed the agreement would create thousands of high-paying jobs and aid in economic recovery.

Critics have raised concerns about the deal’s transparency and potential legal hurdles in Venezuela. Legal experts suggest that any transfer of control over oil reserves would require constitutional amendments or legislative approval in Venezuela, where state-owned PDVSA traditionally dominates the industry. The deal’s long-term viability remains uncertain pending further details and formal approvals.