B1 Intermediate · 284 words · 2 min read

Trump Announces Deal Giving US Control of 65bn Barrels of Venezuelan Oil

Washington and Caracas have announced a deal covering 17 oil fields, but the official text has not been released.

The United States and Venezuela have announced an unusual agreement that gives the US control of large parts of Venezuela's oil industry. President Donald Trump described it on social media as a "Historic Transaction" that "MORE THAN DOUBLES American Oil Reserves" and will "substantially lower Gas Prices for all Americans".

The deal covers the development of 17 strategic oil fields with a proven potential of 65 billion barrels, according to Venezuela's interim President, Delcy Rodriguez. She said it also includes more than $100 billion of investment and more than $209 billion in taxes for the state, and that it would have "a significant impact on our nation's revival". Secretary of State Marco Rubio called it "a huge win for both the American and Venezuelan people".

Few details were released and the official text of the agreement has not been published. A US official told CBS News, the BBC's media partner, that the US government will keep 55% control of a joint venture with an experienced private operator in Venezuela, and that Rodriguez gave the venture a 100-year concession to work in the oil fields.

Trump said Rubio and Defence Secretary Pete Hegseth reached the agreement with Venezuela's leadership "through a partnership with private business", and that it came "at no cost to the American Taxpayer". He did not explain the partnership or the possible terms for the US.

Trump promised to use Venezuela's reserves after US forces captured then-President Nicolás Maduro and his wife, Cilia Flores, on 3 January. Venezuela has the world's largest proven oil reserves, an estimated 303 billion barrels, but production has fallen sharply since the late 1990s. It is not clear whether the agreement could face legal challenges in Venezuela.

Too difficult? Read this story at A2 or at A1.