Venezuela's interim president says US energy deal will last 25 years

• The agreement targets development of 17 strategic oilfields with initial production goal of 1.5 million bpd, with plans to expand to eight additional greenfield oil blocks
• Venezuela would receive about $19 per barrel sold under the arrangement, generating an estimated $209 billion in total state revenue over the deal's duration
• Venezuela currently produces only 1.25 million bpd despite having the world's largest proven oil reserves, after years of underinvestment, mismanagement and sanctions

Venezuela-US Energy Deal: 25-Year Partnership Targets Production Boost

Venezuelan interim President Delcy Rodriguez announced a historic 25-year energy agreement with the United States aimed at reviving the country's struggling oil sector. The deal targets crude production of 1.5 million barrels per day (bpd), a significant increase from Venezuela's current output of approximately 1.25 million bpd.

Key Deal Terms

The bilateral agreement encompasses development of 17 strategic oilfields, with plans to expand to eight additional greenfield blocks. Rodriguez stated the arrangement could generate approximately $209 billion in revenue for Venezuela, based on a benchmark price of $65 per barrel, with roughly $19 per barrel flowing directly to the Venezuelan government.

President Trump announced Friday that the U.S. secured majority control over more than 65 billion barrels of Venezuela's proven oil reserves through partnerships with private companies. Venezuela possesses the world's largest proven oil reserves but has suffered from years of underinvestment, mismanagement, and sanctions that have crippled production capacity.

Market Implications

Rodriguez emphasized that Venezuela retains sovereignty over its natural resources while accessing U.S. capital, technology, and operational expertise. The deal aims to boost government revenue and economic growth in the sanctions-battered nation.

Venezuelan officials plan to sign agreements next week granting new exploration and production rights to multiple companies, including U.S. firms. Chevron is reportedly finalizing negotiations to transition its Venezuelan joint ventures into the new framework.

The agreement faces domestic opposition, with pro-government groups protesting U.S. involvement in downtown Caracas. The partnership could provide new crude sources to help lower U.S. fuel prices.