US and Venezuela sign landmark oil pact granting Washington majority control of reserves

The United States and Venezuela have reached a deal under which Washington will take majority control of more than 65 billion barrels of proven oil reserves, according to officials from both countries. The agreement, announced Friday, is expected to bring nearly $100 billion in private investment to Venezuela and generate over $200 billion in tax revenue, as stated by interim leader Delcy Rodriguez. President Donald Trump called it the largest oil deal in world history, while Secretary of State Marco Rubio framed it as a win for American energy security and lower domestic gas prices.

The agreement follows the January ouster and capture of longtime leader Nicolas Maduro, after which Washington permitted his vice president, Delcy Rodriguez, to remain as interim leader on condition of alignment with US policy. Venezuela holds roughly 300 billion barrels of proven reserves, the world's largest, though its infrastructure has deteriorated significantly.

Axios reported that negotiations covered a dozen productive fields containing about 90 billion barrels. Energy researcher Jorge Pinon noted the arrangement is unconventional, with unresolved questions about whether the transfer constitutes a sale, title transfer, or occurs only upon actual production. The deal arrives as America's strategic petroleum reserve sits at a 40-year low.