Oil: Trump says US takes control of 65 billion barrels in Venezuela
Under the agreement, the United States would receive 55 per cent of the output from a joint venture with a private operator active in Venezuela. Venezuelan President Delcy Rodriguez described the deal as “historic”
Donald Trump has announced that the United States has reached an agreement with Venezuela that will grant Washington majority control over more than 65 billion barrels of the South American country’s proven oil reserves, in what the US President has described as ‘the biggest oil deal in the history of the world’.
“The United States of America has just concluded an agreement with Venezuela,” Trump wrote on social media, claiming that the deal – struck through a partnership with private operators – will guarantee the US majority control over a quantity of crude oil almost equivalent to the total volume of US proven reserves.
According to a US official quoted by the New York Times, the agreement would grant the United States a 55 per cent share of the output from a joint venture with a private operator operating in Venezuela.
Venezuelan President Delcy Rodriguez described the agreement as “historic” and stated that it would have “a significant impact on the rebirth of our nation”. The plan is said to cover 17 oil fields, involve over $100 billion in investment and, according to Caracas, could generate $209 billion in tax revenue for Venezuela. “We are putting our immense reserves at the service of national development,” said Rodriguez.
However, the details of the agreement remain largely unknown and the text has not been made public. According to the Washington Post, the United States would acquire a controlling stake in a new joint venture holding 100-year concessions covering almost a quarter of Venezuela’s untapped oil reserves.
