US President Donald Trump says Washington has reached a major agreement with Venezuela to gain control over more than 65 billion barrels of proven oil reserves. He said the deal could more than double US oil reserves and help reduce petrol prices for American consumers.

Venezuela’s interim President Delcy Rodríguez welcomed the agreement on Saturday, describing it as a historic step toward rebuilding the country’s struggling economy. She said the accord would remain in place for 25 years and aims to increase crude production to 1.5 million barrels per day.

The agreement covers 17 strategic oil fields with proven potential of about 65 billion barrels. Rodríguez said the plan could attract more than $100 billion in investment and generate over $209 billion in taxes for Venezuela.

However, the deal has raised questions about how Washington and Caracas will implement it.

Washington seeks greater control over oil fields

Under the proposed arrangement, the US government would hold a 55% stake in a joint venture with an experienced private operator in Venezuela, according to a US official who spoke to CBS News.

The official also said Rodríguez had granted the venture a 100-year concession to operate the oil fields. However, authorities have not yet released the full agreement, leaving important details unclear.

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Trump said Secretary of State Marco Rubio and Defence Secretary Pete Hegseth helped negotiate the agreement with Venezuela’s leadership through a partnership with private companies. He provided few details about the structure of the deal or the commitments made by Washington.

Rubio called the agreement a major victory for both countries. He said it could bring nearly $100 billion in private investment to Venezuela, create thousands of jobs and support the reconstruction of its economy.

Critics question legality and investment prospects

Despite the government’s optimism, analysts have raised concerns about the agreement. Venezuelan opposition lawmaker Henrique Capriles said authorities must explain the deal’s legal foundation and clarify what Venezuelans will receive from the arrangement.

Energy consultant David Goldwyn said there was no clear precedent for the US government leasing Venezuelan oil fields. He also questioned whether the agreement could comply with Venezuela’s constitution and hydrocarbons law.

Moreover, Venezuela faces major challenges that could slow investment. Its power grid remains weak, while limited export capacity and political uncertainty continue to affect the energy industry.

Lawyer Alexander Kuiper described the deal as potentially significant but urged caution. He said the agreement could influence oil prices in the short term, but questions remain over whether Venezuela’s reserves will translate into actual investment and increased production.

For now, the Venezuela oil agreement remains short on publicly available details.

Huge reserves face long-term production challenges

Venezuela holds an estimated 303 billion barrels of proven oil reserves, the largest total in the world. However, its production has fallen sharply from its peak in the late 1990s.

Years of government control, underinvestment and US sanctions have damaged the country’s oil industry. Much of Venezuela’s crude consists of heavy, sour oil, which requires specialised refining and differs from the lighter crude commonly produced in the United States.

US energy companies could soon play a larger role in rebuilding Venezuela’s ageing infrastructure. Reports suggest Chevron and Halliburton are considering multibillion-dollar investments in oil-field upgrades.

Still, analysts say any major increase in production will take time. The agreement could support Venezuela’s economic recovery and attract investment, but it is unlikely to significantly increase global oil supplies in the immediate future.

Trump is also under pressure to lower petrol prices in the United States after energy costs rose sharply amid disruption linked to the war involving Iran. Whether the Venezuelan deal can deliver quick relief for American consumers remains uncertain.