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ListenABC NewsNews HomeWhat we know about US President Donald Trump's Venezuela oil dealShareShare articleWhat we
know about US President Donald Trump's Venezuela oil dealTopic:World PoliticsPosted Sun 30 Aug 2026 at 2:03pmSun 30
Aug 2026 at 2:03pmSun 30 Aug 2026 at 2:03pmVenezuela will give the US access to its vast oil reserves as part of a
25-year agreement. (Reuters: Leonardo Fernandez
Viloria)abc.net.au/news/us-president-donald-trump-venezuela-oil-deal-delcy-rodriguez/107094966Link copiedShareShare
articleUS President Donald Trump says his government has struck "the biggest oil deal in history", granting
the US access to Venezuela's vast oil reserves. Venezuela's Acting President, Delcy Rodríguez, says the deal
will help to revive the country, and that it retains ownership over its resources. The South American nation has the
world's largest proven oil reserves, but produces far below its potential after years of underinvestment,
mismanagement and sanctions.Here's what we know about the deal. Announced on social mediaMr Trump announced the
deal on Truth Social on Friday night, local time.Here's some of that post:"The United States of America has
just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY! "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, have secured majority
US control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American
Taxpayer."This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and
will substantially lower Gas Prices for all Americans, long into the future, while helping to continue to set Venezuela
on a course toward Tremendous Success and Great Prosperity."Venezuela's leader praises dealMs Rodríguez spoke
about the deal in a televised national address on Saturday night, local time."This 25-year bilateral project
envisages the development of 17 strategic oilfields with a production target of more than 1.5 million barrels per
day," she said. "That figure relates solely to the bilateral agreement between Venezuela and the United
States."Delcy Rodríguez says the deal with the US will revive her country. (AP: Pavel Golovkin)Ms Rodríguez
said the agreement could generate about $US209 billion ($291 billion) in revenue for Venezuela, based on a benchmark oil
price of $65 per barrel, though she acknowledged crude prices could fluctuate. She said roughly $US19 from each barrel
produced and sold under the arrangement would flow directly to Venezuela.She said the "historic" deal would
help revive the country's economy and boost government revenues, stressing it would preserve Venezuela's
sovereignty over its natural resources, "One thing must be absolutely clear: Venezuela retains ownership and
sovereignty over its resources."Ms Rodríguez was named the interim leader of Venezuela after the US military
captured her predecessor, Nicolás Maduro, in a middle-of-the-night raid in January, and brought him to New York to face
federal drug trafficking charges.Ms Rodríguez had been vice-president to Mr Maduro before his capture. What are the
terms?The US government and an unnamed private operator in Venezuela formed a new company that was given the rights to
untapped oil fields for 100 years, the Associated Press reports. The deal gives the US 55 per cent effective output of
the new private company, including an ownership stake and rights to buy oil at cost. American purchases of the oil will
go towards the US strategic oil reserves along with the military, according to a US official who was not authorised to
discuss the matter publicly and spoke to the Associated Press on the condition of anonymity.The company would be the
second-largest corporate holder of proven reserves after Saudi Aramco, according to the official.Will it cut fuel prices
in the US?Probably not any time soon. Experts have repeatedly warned that Venezuela's dilapidated oil
infrastructure will take years and billions of dollars to repair. They say a substantial boost in production is not
expected to happen quickly."[The deal could be] helpful in the long run, but it's not going to do anything to
change the price of gasoline at the retail station for Labor Day weekend," said Amy Myers Jaffe, director of the
Energy, Climate Justice and Sustainability Lab at New York University.Neither side made clear who would pay for
infrastructure investments and at what cost.The average price of petrol in the US stood about $US4.08 a gallon on
Saturday, according to AAA. The average price was $US3.20 at the same time last year.Kevin Book, managing director at
ClearView Energy Partners, said the oil industry was awaiting clarity on the deal's details. Venezuela has room to
increase its oil production, he said — in the past it produced more than 2.5 million barrels a day above current
levels — but investments of this scale do not happen quickly."It's going to take time — many years — to
deploy that much capital and produce the kind of incremental results that history suggests possible," Mr Book
said. Venezuela has the world's largest proven oil reserves. (Reuters: Carlos Garcia Rawlins)What questions
remain?Many important details remain unclear, including who will cover necessary investments, the identity of the
private operator and how America's stake in the company breaks down.The US will get 55 per cent of the
company's effective output, but it was not clear what portion of that comes from an ownership stake and how much
comes from the right to buy oil at cost.It also is unclear how the industry will react. Persuading big American oil
companies to return to the region could prove a challenge given the political uncertainty and damaged
infrastructure.Chevron, the only US oil company actively producing in Venezuela, declined to comment. Separately from
Mr Trump's announcement, Chevron already had been in talks to expand investment in the country. Exxon Mobil also
declined to comment.David Oxley, chief climate and commodities economist at Capital Economics, said that on the face of
it, the deal could double US oil reserves and reduce dependence on crude oil from Canada and Mexico. He cautioned that
there were logistical hurdles though, and said the value of Venezuela's reserves may have been exaggerated under
former president Hugo Chávez.Even with legal and security guarantees, it is not clear that US oil companies "would
be eager to invest,'' he said, noting that "there simply might be more enticing commercial opportunities
on offer elsewhere".How will Venezuelans react?Some in Venezuela considered it a betrayal of what their government
has stated repeatedly for decades: Venezuelan resources are for Venezuela, and leaders would not allow the US government
access to those resources.At a market in eastern Caracas on Saturday, Douglas Borjas said he was upset about the
announcement."I think they're doing it to cling to power," he said of Venezuela's
leaders. "It's like, 'I'm giving you a vast amount of petroleum as long as you leave me alone here
in power'."The Venezuelan people deserve better. Venezuela has resources that can be exploited, but for the
benefit of the people, not for the benefit of the corrupt elite."Harvard University professor Ricardo Hausmann, a
former Venezuelan planning minister, called it a "shameful deal"."Venezuelans will not respect this
illegitimate deal and no major US oil company will take it seriously because they know it will not last," Hausmann
said on social media.He said Ms Rodríguez had "no legitimacy or constitutional power to commit Venezuela to any
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