Washington and Caracas sign landmark 25-year petroleum agreement
The US and Venezuela have finalized a 25-year oil deal involving 65 billion barrels, which President Trump called the largest in history. Venezuela's interim president assured that the country retains sovereignty over its oil resources. The agreement aims to develop Venezuela's oil industry.
The agreement, finalized after negotiations between Washington and Caracas, covers 65 billion barrels of Venezuelan crude and extends for a quarter-century. President Trump has publicly described the arrangement as the largest oil deal ever concluded, while a separate report indicates the United States will assume operational control over roughly one-fifth of Venezuela's proven reserves.
Venezuela's interim president, Rodriguez, addressed citizens on television to emphasize that the pact preserves national ownership and sovereignty over oil resources. The stated purpose is to revitalize Venezuela's struggling petroleum sector, which has suffered from years of underinvestment and international sanctions, though specific technical and financial terms of the arrangement were not disclosed in the announcement.
This deal could reshape global energy markets and Venezuela's political trajectory, potentially bringing billions in revenue to a sanctions-strained economy while deepening US influence over a strategic resource. Venezuelan citizens may see improved infrastructure and employment if development proceeds, but could also face concerns about foreign control and environmental impacts. Regional governments and rival producers may respond by adjusting their own energy and diplomatic strategies, affecting prices and geopolitical alignments across the hemisphere.