U.S. and Venezuela form joint venture to develop oil fields amid limited details
The United States and an unnamed private operator in Venezuela have created a new company to develop 17 oil fields, giving the U.S. a 55% effective output share, but key terms of the agreement remain undisclosed.
Washington officials announced on Friday that a new private company, jointly owned by the U.S. government and an unnamed Venezuelan operator, has been granted rights to develop 17 untapped oil fields with an estimated 65 billion barrels of proven reserves. The arrangement, described by Venezuela’s acting president Delcy Rodríguez as a step toward economic recovery, would give the United States a 55 percent effective output share, including an ownership stake and the right to purchase oil at cost for the strategic petroleum reserve and military use.
The deal, which Trump touted as a historic agreement, was reportedly negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and Rodríguez. A U.S. official, speaking on condition of anonymity, said the venture could become the world’s second-largest corporate holder of proven reserves after Saudi Aramco.
Details on financing, timelines for drilling and infrastructure investment remain unclear, and no text of the agreement has been released. Analysts note that Venezuela’s oil infrastructure is in poor condition and would require years and billions of dollars to restore, limiting any near-term impact on U.S. gasoline prices. "It’s helpful in the long run, but it won’t change the price of gasoline at the retail station for Labor Day weekend," said Amy Myers Jaffe, director of the Energy, Climate Justice and Sustainability Lab at New York University.
Reactions in Venezuela have been mixed, with some citizens viewing the deal as a betrayal of national sovereignty. Harvard professor Ricardo Hausmann called it a “shameful deal,” questioning Rodríguez’s authority to commit the country. In the United States, Republican senators praised the agreement as a win, while Democratic lawmakers condemned it as corruption and warned it could endanger service members.
Major U.S. oil companies have not confirmed participation; Chevron, the only U.S. firm currently producing in Venezuela, declined to comment, and Exxon Mobil also remained silent. Economists caution that logistical challenges and political risk may deter investment, and the actual value of Venezuela’s reserves could be lower than claimed.