Venezuela-US oil deal to run 25 years, boost production

25-year agreement to expand Orinoco production

Venezuelan interim President Delcy Rodriguez announced on Saturday that a "historic" oil agreement with the United States will remain in effect for 25 years and aims to increase the country's daily production to more than 1.5 million barrels. Speaking to state broadcaster VTV, Rodriguez said the project covers the development of eight crude oil fields in the Orinoco Oil Belt, which spans more than 55,000 square kilometers in eastern and east-central Venezuela.

Rodriguez stated that the agreement envisages a royalty rate of at least 16% and an income tax rate of 34%, adding that these terms would accelerate the country's economic recovery. "It must be absolutely clear that Venezuela retains ownership and sovereignty over its resources," she said, noting that Washington would provide capital, technology, and operational capacity to revitalize the strategic sector.

Financial terms and international partners

The interim president explained that Venezuela would receive approximately $19 for every barrel produced and sold under the arrangement. Based on an oil price of $65 per barrel, she said the country could generate $209.335 billion in revenue from the deal, which involves energy giants including Chevron, Repsol, Eni, Shell and BP. "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," Rodriguez said.

She thanked US President Donald Trump and Secretary of State Marco Rubio for their efforts toward reaching the agreement, saying that "each side contributed what it does best." Rodriguez assumed the interim presidency in January after a US military operation captured former President Nicolas Maduro.

Trump announces 'biggest oil deal in history'

Trump said Friday on his Truth Social platform that Washington finalized the agreement to secure majority control of more than 65 billion barrels of 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, crediting Rubio and Defense Secretary Pete Hegseth for working alongside Rodriguez to finalize the transaction.

Rubio said the deal is a "huge win" for both nations and will bring nearly $100 billion in private investment to Venezuela. Trump asserted the partnership involves no cost to American taxpayers and will "substantially lower gas prices" while promoting prosperity in the South American nation. The agreement strengthens the rapidly evolving relationship between Washington and Caracas following Maduro's removal from power earlier this year.