The United States and Venezuela have reached a landmark agreement aimed at developing a significant portion of Venezuela’s vast oil reserves, a deal described by U.S. President Donald Trump as "the biggest oil deal in world history." Announced on August 29, the agreement was reportedly negotiated by U.S. Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela’s acting President Delcy Rodríguez.
Under the terms of the deal, the United States, in partnership with a private operator yet to be named, will establish a new private company to manage the development of 17 Venezuelan oil fields, collectively estimated to hold around 65 billion barrels of proven reserves. The agreement grants the new company 100-year rights to develop these fields, with the U.S. securing an effective 55% share of the company's output, including ownership stakes and preferential rights to buy oil at cost. This arrangement would position the new entity as one of the largest holders of proven oil reserves globally, second only to Saudi Aramco.
The Venezuelan government has characterized the deal as a significant boost for the country's economy, anticipating nearly $100 billion in private investment and over $200 billion in tax revenue. Rodríguez described the agreement as a "historic" step that will aid Venezuela's economic revival. Meanwhile, U.S. officials have highlighted the potential benefits for the United States, including bolstering the strategic petroleum reserve—currently at a 40-year low—and helping address domestic fuel costs amid ongoing global supply disruptions linked to the conflict in Iran.
The deal emerges after nearly nine months since the U.S.-led operation detained former President Nicolás Maduro, who remains in U.S. custody facing federal criminal charges. Maduro’s ouster and Rodríguez's continuation in a leadership role have been central to U.S. efforts to influence Venezuela’s political and economic trajectory.
Despite the high-profile announcement, experts caution that an immediate reduction in U.S. gasoline prices is unlikely. Venezuela’s oil industry infrastructure has suffered decades of neglect and damage, limiting the country’s current output to about 1% of global production despite its substantial reserves. Analysts note that rebuilding and expanding production capacity will require significant time and investment, and uncertainty remains regarding the involvement of major U.S. oil companies, some of which have historically been hesitant due to political instability and previous nationalization of assets.
Some industry voices have questioned the specifics of the deal’s implementation, including how ownership and production rights will be transferred and what legal and operational frameworks will govern the collaboration. For instance, Chevron—the only major U.S. oil company operating in Venezuela prior to the deal—has pledged plans to increase its output gradually over the coming years but remains cautious.
The announcement comes amid continued U.S. and Israeli military engagement with Iran, which has disrupted oil flows through the Strait of Hormuz and contributed to elevated fuel prices in the United States. While the agreement aims to secure a more stable and affordable oil supply, experts emphasize the complexities and long-term nature of fully realizing the deal’s potential benefits for both countries.