Venezuela confirms historic oil deal with US covering 65 billion barrels

The United States just locked down access to 65 billion barrels of Venezuelan oil in a deal valued at roughly $5.4 trillion. President Donald Trump announced the agreement on August 28, describing it as a move that would effectively double American oil reserves without costing taxpayers a dime.

Venezuela’s interim President Delcy Rodríguez confirmed the arrangement, calling it historic. The joint venture created under this deal would become the second-largest private oil company on the planet by reserves, trailing only Saudi Aramco.

What the deal actually looks like

The structure centers on a private joint venture that gives the US 55% effective output rights across 17 strategic oil fields in Venezuela. Those fields sit atop proven reserves totaling more than 65 billion barrels, representing roughly a fifth of Venezuela’s estimated 303 billion barrels in total reserves.

The concession period runs 100 years. On the investment side, the agreement is expected to funnel approximately $100 billion in private capital into Venezuela’s oil sector. In return, the Venezuelan government stands to collect more than $209 billion in tax revenue over the life of the arrangement.

The negotiations were led by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth. Additional agreements are expected to be signed in the coming week, though the specific private sector partners involved in the joint venture have not yet been named.

Why Venezuela, and why now

Venezuela holds the largest proven oil reserves of any country on Earth, yet its production has been in freefall for years. Mismanagement under the Maduro government, compounded by US sanctions, cratered output from roughly 3 million barrels per day at its peak to a fraction of that figure.

A January 2026 U.S.-led operation resulted in the ousting of former President Nicolás Maduro, leading to Delcy Rodríguez’s assumption of the interim presidency. In the aftermath, the U.S. sought expanded access to Venezuelan oil to alleviate shortages affecting domestic refiners and replenish dwindling strategic reserves.

Trump framed the deal as a mechanism to reduce domestic gas prices, a politically potent promise heading into a period of elevated fuel costs linked to instability in other oil-producing regions. The US currently sits on roughly 44 billion barrels of proven reserves domestically.

What this means for energy markets

Venezuela has historically maintained close ties with China and Russia, both of which have invested heavily in the country’s oil sector. A US-dominated joint venture controlling a fifth of Venezuela’s reserves introduces a direct American footprint into a region where rival powers have operated with relatively little competition.

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