Donald Trump announced that the US has reached what he calls the "largest oil deal in world history" with Venezuela, gaining majority control of over 6.5 billion barrels of proven reserves through collaboration with the private sector, stating it would not cost American taxpayers a dime.

He indicated that Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth negotiated with Venezuela's interim president Delcy Rodriguez, and that the deal would "more than double" US oil reserves, increase supply, and lower oil prices. Rubio mentioned nearly $100 billion in private investment, thousands of high-paying jobs, and economic reconstruction. The Venezuelan side stated the deal involves 17 strategic oil fields, proven potential of 6.5 billion barrels, over $100 billion in investment, and approximately $209 billion in tax revenue for the treasury. An anonymous US official stated that a joint venture would be established, with Rodriguez granting about 100 years of development rights; the US would receive about 55% of effective output, including equity and oil at cost, with crude oil intended to replenish strategic petroleum reserves and for military use; the Pentagon's Strategic Capital Office is involved in the structure. Venezuela has proven reserves of about 303 billion barrels, the largest in the world, with a production of about 1.25 million barrels per day, far below its potential. Chevron is currently the only US oil company still operating locally, and has declined to comment on the president's statement. The full contract, list of oil fields, and participating companies have not been disclosed. Reuters previously reported that the leasing auction plan may face constitutional and state oil control disputes in Venezuela.

The 6.5 billion barrels is a reserve figure, not daily production. Heavy oil development requires funding, diluents, pipelines, and sanction pathways; a 100-year concession does not equate to immediate refinery access. Oil at cost can enter reserves, but does not automatically translate to retail prices. Taxpayers bear zero costs, pushing capital expenditures onto private operators, while also transferring geological and political risks to the same set of accounts.

In market mechanisms, this is a geopolitical reserve transaction, not an immediate production increase. The buyer is the US government seeking cheap crude oil and reserve replenishment, while the seller is the interim authority seeking investment and tax revenue. Funds from international oil companies' capital expenditures will enter oil field restoration, with crude oil flowing at cost to US reserves and military contracts. Beneficiaries are the US joint ventures and operators receiving long-term concessions and cost oil, while the existing production sharing structure and logistics still constrained by sanctions are under pressure. Chevron is already on-site, and if the new joint venture operates separately, how the old contracts will be consolidated has not been stated. Gasoline retail is also constrained by refining capacity, the Iran conflict, and shipping costs; simply doubling reserves does not resolve this week's oil prices.

In supplementary statements, Axios reported that the arrangement is similar to a public-private partnership, not a sovereign buyout; the White House has not immediately provided the full text.

Source: Public information