US-Venezuela oil deal grants US control of

President Donald Trump has announced a deal granting the United States control over more than 65 billion barrels of Venezuela's proven oil reserves. The agreement, which Trump hailed as "historic" on social media, was reached with Venezuela's leadership through a partnership with private business, according to the President.

Trump claimed the transaction would more than double American oil reserves, greatly increase supply, and substantially lower gas prices for Americans. He stated the deal was reached "at no cost to the American Taxpayer." Few other details were publicly released.

Deal Terms and Projections

Venezuela's interim President, Delcy Rodriguez, provided some specifics in a statement. She said the deal calls for the development of 17 strategic oil fields with a proven potential of 65 billion barrels. Rodriguez projected it would bring an investment of more than $100 billion and more than $209 billion in taxes for the Venezuelan state.

"These investments will contribute not only to the recovery and modernization of our industry, but also to our country's economic growth, the energy security of our hemisphere, and greater balance in international markets," Rodriguez said. She hailed the agreement as one that would have a significant impact on her nation's revival.

A US official told the BBC's media partner CBS News that under the deal, the US government will retain 55% control of a joint venture with an experienced private operator in Venezuela. According to the official, Rodriguez granted the venture a 100-year concession to operate in the oil fields.

Context and Unanswered Questions

The agreement appears highly unusual, granting the US direct governance over a foreign country's sovereign national resources. Its scope seems wider than the US-led Coalition Provisional Authority's control over Iraq's oil revenues after 2003. The deal follows the capture of Venezuela's then-President Nicolás Maduro by US special forces in an operation authorised by Trump on 3 January.

In the hours after that raid, Trump said his administration would run Venezuela until a safe transition could take place, adding the US would indefinitely control the sale of the country's oil. He has previously claimed rights to Venezuela's oil, alleging past seizures of American assets cost the US billions.

Secretary of State Marco Rubio called the oil deal "a huge win for both the American and Venezuelan people." On social media, Rubio claimed the deal would bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive Venezuela's economic reconstruction.

It remains unclear whether the agreement will face legal and constitutional challenges within Venezuela. The official text of the agreement between Washington and Caracas has not been released. Venezuela possesses the world's largest proven oil reserves, estimated at 303 billion barrels, though its production has plummeted since its peak decades ago.