Venezuela and the United States have entered into a 25-year energy agreement that aims to significantly increase the South American nation's crude oil output and revitalize its economy. Venezuelan interim President Delcy Rodriguez announced the deal, describing it as a "historic" accord that will bolster government revenue and shape the country's future.
The bilateral project is designed to develop 17 strategic oilfields with an initial production target of more than 1.5 million barrels per day, Rodriguez said in a late-night address broadcast on state television.
"That figure relates solely to the bilateral agreement between Venezuela and the United States," she stated. Rodriguez further indicated that the 1.5 million bpd target is an initial phase, with broader plans encompassing the development of eight additional greenfield oil blocks as part of a larger expansion of Venezuela's energy sector.
President Donald Trump confirmed the agreement on Friday, stating that the U.S. would gain majority control of more than 65 billion barrels of Venezuela's proven oil reserves through a partnership with private businesses. The move is intended to leverage American companies to revive Venezuela's struggling energy industry and secure a new crude supply to help lower U.S. fuel prices.
Venezuela possesses the world's largest proven oil reserves, but production has fallen to approximately 1.25 million barrels per day due to years of underinvestment, mismanagement, and sanctions. The agreement is projected to generate an estimated $209 billion in revenue for the Venezuelan state, assuming an oil price of $65 per barrel, although fluctuations in crude prices are acknowledged.
Rodriguez emphasized that Venezuela would retain "ownership of and sovereignty" over its natural resources while benefiting from capital, technology, and operational expertise to aid the recovery of its energy industry, which has been severely impacted by sanctions.
Venezuelan officials are reportedly preparing to sign agreements in the coming week that will grant new oil exploration and production rights to several companies, including U.S. firms. Sources close to the negotiations indicated that Chevron is among the companies expected to finalize discussions regarding the transition of its Venezuelan joint ventures into the new energy framework.
Earlier on Saturday, protests against the U.S. presence in Venezuela took place in Caracas. Rodriguez, however, welcomed the energy agreement following Trump's announcement, anticipating it will stimulate economic growth and increase state revenue.