President Donald Trump announced on 28 August that the United States had struck what he called "the biggest oil deal in world history" with Venezuela, securing majority US control of more than 65 billion barrels of the country's proven oil reserves. Writing on Truth Social, Trump said the arrangement was negotiated "At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business," and claimed it would come "at no cost to the American Taxpayer." He said the deal "MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future."
According to a US official cited by CBS News, Rodriguez granted a private joint venture a 100-year concession to operate in oil fields making up 65 billion barrels of petroleum, with the US government controlling 55% of the venture, split between equity and the ability to obtain oil at cost. That would make the entity the world's second-largest corporate owner of proven oil reserves, after Saudi Aramco. Rodriguez's government said the agreement covers the development of 17 fields with a proven potential of 65 billion barrels, and could draw $100 billion in investment into Venezuela's oil industry and yield over $209 billion in taxes for Caracas. Rubio, who led the US side of the talks, called it "a huge win for both the American and Venezuelan people," adding that it "will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela's economy." Rodriguez, in a Telegram post, predicted the deal "will have a significant impact on our nation's revival."
The announcement follows the operation that nearly nine months earlier saw the US military, at Trump's direction, capture Venezuela's president Nicolás Maduro and spirit him to the United States to face federal narcoterrorism and drug trafficking charges. Trump subsequently backed Rodriguez, Maduro's former vice president, to lead the interim government, and she has since moved to reverse decades of state control over the sector: according to NPR, Rodríguez, in one of her early moves after taking power, signed a law that opens the nation's oil sector to privatization, reversing a bedrock tenet of the self-proclaimed socialist movement that has ruled the country for more than two decades. Trump has long argued that Venezuela's oil sector rightfully belongs in part to the United States, pointing to Hugo Chávez's nationalisation of foreign-owned assets decades ago.
The timing carries domestic political weight. CNN noted that Trump's emphasis on lowering American gas prices comes almost two months before the US midterm elections, as the national average gas price sits at more than $4 a gallon, while the announcement comes as Trump faces mounting pressure over high gas prices as the war in Iran reaches a six-month milestone with no conclusion in sight, and the US has tapped its strategic petroleum reserves, which fell below 300 million barrels in early August. Al Jazeera reported that despite the fanfare, details remain unclear, though the deal will involve 17 strategic oil fields in Venezuela, and that the arrangement has drawn criticism as a takeover of the country's resources by a government installed after Maduro's removal.