US President Donald Trump announced an unprecedented US initiative to take control of a fifth of Venezuela's vast oil reserves, betting that American companies can revive the Organization of the Petroleum Exporting Countries (OPEC) member's ailing energy industry while providing a new source of crude oil that would help lower fuel prices in the United States, Reuters reported.
Trump did not give many details about the agreement, saying only that the United States has secured majority control of more than 65 billion barrels of Venezuela's proven oil reserves through a partnership with the private sector, BTA specified.
"At my direction, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, in close cooperation with the highly respected interim president of Venezuela Delcy Rodriguez and through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven oil reserves in Venezuela, at no cost to the American taxpayer," Trump wrote in a post on his social network "Truth Social".
The announcement comes after weeks of negotiations between the United States and Venezuela on a deal that would give U.S. companies long-term access to a group of Venezuelan oil fields and guarantee crude supplies to the United States, Reuters notes.
Sources previously told Reuters that another model was being considered in which the oil fields could be auctioned off to U.S. producers, but that scheme could face legal and constitutional obstacles in Venezuela, where the state retains control over key activities in the oil industry.
U.S. Secretary of State Marco Rubio said in "Ex" that the new agreement, which will give the United States a huge share of Venezuela's oil reserves, will bring nearly $100 billion in private investment to the Latin American country, notes Agence France-Presse.
Rubio stressed that the agreement will ensure stable supplies and lower fuel prices in the United States, adding: "For the Venezuelan people, this agreement will bring nearly $100 billion in private investment, support thousands of high-paying jobs and boost the recovery of the Venezuelan economy."
The deal would dramatically expand the role of the United States in Venezuela's oil industry amid the Trump administration's drive to revive the country's declining production and provide more crude oil for U.S. refineries. Venezuela has the world's largest proven oil reserves but produces only about 1.25 million barrels per day - far below its potential after years of underinvestment, resource mismanagement and sanctions, Reuters notes.
Trump's statement provided few details about the structure of the agreement, the fields or companies, or how the United States would exercise majority control over the reserves.
Since the United States seized and ousted Venezuelan President Nicolas Maduro in January, Washington has been trying to ensure a steady flow of crude from Venezuela to U.S. refineries while encouraging U.S. investment in the country's oil industry.
The Trump administration is under pressure ahead of the upcoming midterm elections in early November due to rising fuel prices, which could be eased by cheaper oil supplies and increased production, Reuters notes.