Venezuela unveils details of a 25-year oil agreement with the United States

Monday 31 August 2026 - 10:39

By: Azzat Manal

Venezuela unveils details of a 25-year oil agreement with the United States

Venezuela’s interim president Delcy Rodríguez has outlined details of a proposed long-term oil agreement with the United States, describing it as a 25-year bilateral project aimed at reviving the country’s energy sector and strengthening public revenues.

According to Rodríguez, the agreement would involve the development of 17 strategic oil fields, with the objective of eventually increasing production to more than 1.5 million barrels per day. The initiative is presented as an effort to restore Venezuela’s oil industry after years of economic difficulties, underinvestment and the impact of international sanctions.

Rodríguez said the arrangement would be based on a division of responsibilities between the two countries. Venezuela would contribute its oil resources, industrial infrastructure and more than a century of experience in the petroleum sector, while American partners would provide capital, technology and operational expertise needed to rehabilitate and expand existing assets.

Under the proposed structure, Venezuela would benefit from additional oil production, employment opportunities, infrastructure investment and higher government revenues. Rodríguez also said that the country would receive $19 for every barrel produced and sold to the United States. Based on a reference oil price of $65 per barrel, she estimated that the arrangement could generate substantial annual revenues.

The project would involve Venezuela’s extensive oil reserves, which are among the largest in the world. Rodríguez stressed that the Venezuelan state would retain ownership and sovereignty over its natural resources while using foreign investment and technology to restore production capacity.

The proposed agreement comes as Venezuela seeks to rebuild an industry that has suffered from years of declining output, economic instability and restrictions on access to international markets and financing. Modernizing aging infrastructure and attracting investment remain major challenges for the country’s energy sector.

U.S. President Donald Trump has also praised the proposed arrangement, presenting it as a major development for American access to Venezuelan crude. He has described the agreement as potentially one of the largest oil deals ever negotiated and said it could provide the United States with access to a significant portion of Venezuela’s proven reserves without imposing costs on American taxpayers.

The contrasting descriptions from Caracas and Washington highlight the strategic importance of the proposed partnership. For Venezuela, the agreement could provide investment and technological support to restore production, while Washington would gain closer access to one of the world's largest oil reserves.

If implemented, the project could significantly reshape Venezuela’s oil industry and its economic relationship with the United States. Its long-term impact will depend on the final contractual arrangements, investment commitments, production targets and the broader political and sanctions environment surrounding Venezuela’s energy sector.