Trump announces U.S. deal for 65 billion barrels of Venezuela oil

By Aurax Radio | August 29, 2026 | 2 min read

President Donald Trump says the United States has secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves under a new agreement with Caracas. The deal is intended to attract nearly $100 billion in private investment, rebuild Venezuela’s struggling petroleum industry and increase U.S. access to crude as Washington seeks to ease pressure on energy supplies and fuel prices.

Oil production equipment and infrastructure at a Venezuelan oil field.

Venezuela’s oil industry could receive nearly $100 billion in private investment under the new agreement with the United States.

Trump announced the agreement Friday, saying it was negotiated by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth with Venezuelan interim President Delcy Rodríguez. Under the arrangement, a new partnership involving the U.S. government and private operators would develop 17 oil fields, with the United States holding a 55% operating share, according to U.S. officials cited by news organizations. The agreement is expected to involve nearly $100 billion in private investment, while Venezuelan officials estimate it could generate more than $209 billion in tax revenue for the government. Trump has said the arrangement would increase U.S. oil supplies and help reduce gasoline prices, although the deal would not immediately add the full volume of reserves to global production.

Venezuela has the world’s largest proven crude oil reserves, estimated at just over 300 billion barrels, but its production has fallen dramatically because of years of underinvestment, sanctions, deteriorating infrastructure and economic turmoil. The agreement follows recent changes by Caracas to allow greater private participation in the oil industry and Washington’s efforts to encourage U.S. companies to return to Venezuela. Reuters reported before the announcement that the two governments had been considering a structure that would give U.S. companies long-term access to selected Venezuelan fields, including areas in the Orinoco Belt and Lake Maracaibo.

The agreement represents a major expansion of U.S. involvement in Venezuela’s energy sector, but its implementation faces significant practical and legal challenges. Venezuela’s oil industry requires extensive investment to restore damaged infrastructure and increase output, while the country’s previous nationalization of foreign-owned assets has left some international oil companies cautious about returning. Reuters also reported that Venezuela’s constitutional and hydrocarbons laws could raise questions about how long-term foreign control of oil fields can be structured. For the United States, the deal comes as the administration seeks additional energy supplies and faces elevated fuel prices amid the continuing war in Iran.

Sources: Associated Press, Reuters, BBC, Al Jazeera, CNN, ABC News and CBS News.

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