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Trump hails 'historic' deal for US to control 65bn barrels of Venezuela's oil

August 29, 2026

The United States has secured an agreement with Venezuela's interim government to control over 65 billion barrels of Venezuelan oil reserves through a joint venture retaining 55% US control. The deal follows the capture of former Venezuelan President Nicolás Maduro by US special forces in January and aims to address rising domestic gasoline prices while promising over $100 billion in private investment for Venezuela. Under the arrangement negotiated by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, a private operator will develop 17 strategic oil fields under a 100-year concession from interim President Delcy Rodriguez.

Who is affected

  • American consumers (promised lower gas prices)
  • Venezuelan people (promised economic revival, jobs, and investment)
  • President Donald Trump and his administration (Secretary of State Marco Rubio, Defense Secretary Pete Hegseth)
  • Venezuela's interim President Delcy Rodriguez
  • Former Venezuelan President Nicolás Maduro and his wife Cilia Flores (seized by US forces)
  • Private business operators partnering in the venture
  • US oil firms (asked to invest $100 billion)

What action is being taken

  • The US government is controlling more than 65 billion barrels of Venezuela's oil reserves through a joint venture with 55% US control
  • Private operators are developing 17 strategic oil fields under a 100-year concession
  • The Trump administration is running Venezuela following Maduro's capture

Why it matters

  • This represents an unprecedented level of direct US control over another sovereign nation's natural resources, potentially doubling American oil reserves and addressing domestic pressure to lower gasoline prices that spiked amid the Iran conflict. The deal promises significant economic investment in Venezuela's collapsed oil industry while raising questions about international law, sovereignty, and whether such an agreement could face legal and constitutional challenges. The arrangement appears broader in scope than previous US control over foreign resources, such as Iraq's oil revenues after the 2003 invasion.

What's next

  • US oil firms are being asked to invest at least $100 billion to restore Venezuela's oil industry
  • More than $100 billion in private investment is expected to flow into Venezuela
  • Development of the 17 strategic oil fields will proceed under the 100-year concession
  • The US will continue running Venezuela until a "safe, proper and judicious transition" can take place

Read full article from source: BBC