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Venezuela, US Seal 25-Year Oil Deal Worth Billions
(MENAFN) Venezuelan interim President Delcy Rodriguez announced Saturday that a newly reached oil agreement with the United States will run for 25 years and is designed to push the country's daily oil output above 1.5 million barrels.
Speaking on a state broadcaster, Rodriguez called the pact "historic" and laid out its terms and ambitions.
"Our goal is to go even further with the signing of other major agreements involving giant companies such as Chevron, Repsol, Eni, Shell and BP. We want to become an energy power," she said.
She added a concrete financial detail: "In concrete terms, this means that approximately $19 for every barrel produced and sold will go directly to our country."
On the deal's projected economic impact, Rodriguez said that at an oil price of $65 per barrel, Venezuela stands to generate $209.335 billion in revenue.
The agreement centers on developing eight crude oil fields within the Orinoco Oil Belt, a vast region spanning more than 55,000 square kilometers (21,235 square miles) across eastern and east-central Venezuela, according to Rodriguez. She said the terms include a royalty rate of at least 16% and an income tax rate of 34%, which she argued would speed Venezuela's economic recovery.
Rodriguez thanked US President Donald Trump and Secretary of State Marco Rubio for helping broker the agreement, noting that "each side contributed what it does best."
She was careful to underscore Venezuelan sovereignty over the arrangement: "It must be absolutely clear that Venezuela retains ownership and sovereignty over its resources."
Under the deal, Rodriguez said, the US would supply capital, technology and operational expertise to help revive Venezuela's oil sector, which has suffered heavily under sanctions. She pledged transparency going forward, saying Venezuelans "have the right to know how much is being invested, how much is being produced, how much revenue the state is receiving and what the conditions are for the operators."
On the American side, Trump said Friday that Washington had finalized an agreement granting majority control over more than 65 billion barrels of Venezuela's proven oil reserves. "The United States of America has just entered into an agreement with the country of Venezuela on the biggest oil deal in world history," he wrote on Truth Social.
Trump credited Rubio and Defense Secretary Pete Hegseth with working alongside Rodriguez to finalize the transaction. Rodriguez took over the interim presidency in January after a US military operation removed President Nicolas Maduro from power.
Trump characterized the deal as a partnership with private industry that carries no cost to American taxpayers, claiming it more than doubles existing US oil reserves and will "substantially lower gas prices" for Americans over time while fueling prosperity in Venezuela. He said the agreement would deepen the fast-changing relationship between Washington and Caracas.
Rubio, for his part, called the deal a "huge win" for both countries, projecting it will draw nearly $100 billion in private investment into Venezuela.
Speaking on a state broadcaster, Rodriguez called the pact "historic" and laid out its terms and ambitions.
"Our goal is to go even further with the signing of other major agreements involving giant companies such as Chevron, Repsol, Eni, Shell and BP. We want to become an energy power," she said.
She added a concrete financial detail: "In concrete terms, this means that approximately $19 for every barrel produced and sold will go directly to our country."
On the deal's projected economic impact, Rodriguez said that at an oil price of $65 per barrel, Venezuela stands to generate $209.335 billion in revenue.
The agreement centers on developing eight crude oil fields within the Orinoco Oil Belt, a vast region spanning more than 55,000 square kilometers (21,235 square miles) across eastern and east-central Venezuela, according to Rodriguez. She said the terms include a royalty rate of at least 16% and an income tax rate of 34%, which she argued would speed Venezuela's economic recovery.
Rodriguez thanked US President Donald Trump and Secretary of State Marco Rubio for helping broker the agreement, noting that "each side contributed what it does best."
She was careful to underscore Venezuelan sovereignty over the arrangement: "It must be absolutely clear that Venezuela retains ownership and sovereignty over its resources."
Under the deal, Rodriguez said, the US would supply capital, technology and operational expertise to help revive Venezuela's oil sector, which has suffered heavily under sanctions. She pledged transparency going forward, saying Venezuelans "have the right to know how much is being invested, how much is being produced, how much revenue the state is receiving and what the conditions are for the operators."
On the American side, Trump said Friday that Washington had finalized an agreement granting majority control over more than 65 billion barrels of Venezuela's proven oil reserves. "The United States of America has just entered into an agreement with the country of Venezuela on the biggest oil deal in world history," he wrote on Truth Social.
Trump credited Rubio and Defense Secretary Pete Hegseth with working alongside Rodriguez to finalize the transaction. Rodriguez took over the interim presidency in January after a US military operation removed President Nicolas Maduro from power.
Trump characterized the deal as a partnership with private industry that carries no cost to American taxpayers, claiming it more than doubles existing US oil reserves and will "substantially lower gas prices" for Americans over time while fueling prosperity in Venezuela. He said the agreement would deepen the fast-changing relationship between Washington and Caracas.
Rubio, for his part, called the deal a "huge win" for both countries, projecting it will draw nearly $100 billion in private investment into Venezuela.
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