US President Donald Trump has announced a major oil agreement with Venezuela that will give the United States majority control over a new venture involving more than 65 billion barrels of Venezuela’s proven oil reserves. Trump described the arrangement as the “biggest oil deal in world history,” while Washington and Caracas say the agreement is aimed at reviving Venezuela’s struggling oil industry and increasing production.

Trump announced the agreement on Friday, saying it was negotiated by US Secretary of State Marco Rubio, Secretary of War Pete Hegseth and Venezuela’s interim President Delcy Rodríguez. According to US officials, the arrangement involves a partnership between the US government and an unnamed private operator in Venezuela. The United States will have 55% effective control of the venture’s output through an ownership stake and rights to purchase oil at cost. 

What the 65 Billion Barrels Means

The figure of more than 65 billion barrels refers to proven oil reserves in 17 fields that the new venture is expected to develop. It does not mean that the entire 65 billion barrels will immediately be transferred into US ownership or become part of America’s physical oil stockpile.

A US official cited by AP said Rodríguez has granted the venture rights to develop the fields for 100 years. The company structure and the identity of the private operator have not been fully disclosed publicly. The venture could become one of the world's largest corporate holders of proven oil reserves. 

Investment Could Exceed $100 Billion

The agreement is expected to bring substantial investment into Venezuela’s oil sector. Venezuelan officials have said the development of the 17 fields could attract more than $100 billion in investment and generate more than $209 billion in tax revenue for the Venezuelan government.

For Venezuela, the agreement represents an attempt to rebuild an oil industry that has suffered from years of underinvestment, declining production, economic turmoil and sanctions. The country has some of the world's largest proven oil reserves, but its production capacity has remained far below its potential. 

Trump Links Deal to Fuel Prices

Trump has presented the agreement as a way to increase oil supplies and bring down gasoline prices in the United States. He said the deal would more than double US oil reserves and substantially reduce fuel prices for American consumers. 

However, the impact on global and US fuel prices is unlikely to be immediate. Venezuela’s oil infrastructure requires significant investment, while increasing production from the newly developed fields could take years. Analysts have also pointed to infrastructure constraints and the challenges involved in rebuilding the country’s energy sector. 

Venezuela Seeks Oil Industry Revival

The deal is also significant for Rodríguez’s interim government, which is seeking to attract foreign investment and restore Venezuela’s energy industry.

Venezuela’s oil sector has long been central to the country’s economy. Despite possessing enormous reserves, production has declined sharply over the years because of inadequate investment, weakened infrastructure, sanctions and broader economic problems.

The new agreement could allow international companies to play a larger role in developing Venezuelan fields while giving Caracas access to new investment and tax revenues.

Implications for Global Oil Market

The agreement could have wider implications for the global oil market because Venezuela is a member of OPEC and holds one of the world's largest proven oil reserves.

If Venezuelan production rises substantially, additional crude could eventually enter international markets and put downward pressure on prices. However, the effect will depend on how quickly production can be restored, OPEC policies, global demand and developments in other major oil-producing countries.

For India, any sustained increase in global crude supply could potentially influence import costs because the country relies heavily on overseas crude oil. However, the Venezuela agreement alone is unlikely to immediately translate into lower petrol or diesel prices in India.

A Major Shift in US-Venezuela Relations

The announcement marks a significant shift in US-Venezuela relations after years of political confrontation and restrictions on Venezuela’s oil industry.

The Trump administration has increasingly focused on gaining access to Venezuela’s energy resources while seeking to revive production. The new arrangement now places American interests at the centre of a major effort to rebuild the Venezuelan oil sector.

While Trump has portrayed the agreement as a historic economic breakthrough, questions remain over the exact ownership structure, legal framework and timeline for increasing production. The details of the private partnership are expected to determine how much control and economic benefit the United States and Venezuela ultimately receive.

Venezuela has released another 131 people considered political prisoners, in what authorities and international observers see as a significant development in the country’s ongoing reconciliation process following the removal of former President Nicolas Maduro by US forces.

The interim Venezuelan government said on Friday that the 131 people had been granted “alternative measures from incarceration” under its Program for Peace and Democratic Coexistence.

The releases came as government and opposition representatives continue talks aimed at managing Venezuela’s political transition and addressing longstanding concerns over political detentions.

Families Reunite Outside Prison

Emotional scenes were reported outside El Rodeo I prison in Guatire, around 50 kilometres east of Caracas, where several released prisoners were reunited with their families.

The releases brought renewed attention to the issue of political prisoners in Venezuela, which has remained one of the most contentious issues between the interim government and opposition groups.

US Secretary of State Marco Rubio welcomed the development, calling the release of more than 130 political prisoners an important step in Venezuela’s reconciliation process.

Rubio said that 1,046 Venezuelans had been released since January 3, according to the latest US government figures.

Rights Group Confirms Releases

Venezuelan human rights organisation Foro Penal, which has campaigned for the release of people it considers political prisoners, said six women were among those released.

The organisation later said that the release of at least 40 political prisoners had been independently confirmed.

However, opposition figures have stressed that the latest releases do not represent the end of the political prisoner issue.

Opposition leader Dinorah Figuera said that not everyone had been released and called for continued efforts until all political prisoners were freed.

Talks Focus on Reconciliation

The latest releases came a day after Figuera pledged to continue pushing for the release of political prisoners during formal negotiations with Venezuela’s interim government.

The first round of US-brokered talks began last week and concluded on Wednesday. Government and opposition representatives subsequently agreed to cooperate on several issues related to Venezuela’s recovery.

A joint statement said the two sides would work on recovering Venezuelan funds frozen overseas to support reconstruction following devastating June earthquakes that killed more than 6,300 people.

The parties also agreed to discuss reforms to Venezuela’s judicial system. However, the joint statement did not specifically address political prisoners.

Maduro Era Left Detention Legacy

Nicolas Maduro ruled Venezuela from 2013 until his removal earlier this year. His government faced years of accusations from opposition groups and human rights organisations over the detention of political opponents and activists.

Following Maduro’s removal by US forces in January, the interim government began releasing groups of prisoners under pressure from Washington.

Interim President Delcy Rodriguez also supported an amnesty law passed in February, which paved the way for further releases.

Despite the recent developments, Foro Penal said earlier this week that 391 political prisoners remained behind bars.

High-Profile Release

Among those released was Emirlendris Benitez, whose case has attracted international attention.

Benitez was arrested following a 2018 incident in which two drones carrying explosives flew towards Maduro while he was addressing a military parade in Caracas. The drones exploded, injuring seven soldiers.

Benitez, who was four months pregnant at the time of her arrest, denied involvement in the alleged assassination plot. She and her partner, Yolmer Escalona, were eventually sentenced to 30 years in prison.

Human rights organisations have alleged that Benitez was tortured while in detention and that the abuse resulted in a miscarriage and partial paralysis.

Opposition Seeks Democratic Elections

The reconciliation process is being led by Figuera and Jorge Rodriguez, the head of Venezuela’s National Assembly and brother of interim President Delcy Rodriguez.

Opposition leader Maria Corina Machado, who is currently in exile and is a Nobel Peace Prize laureate, has not participated directly in the negotiations. She has, however, said she would not obstruct the process.

Many Venezuelans are hoping that the talks will eventually pave the way for free and democratic elections.

Maduro's victories in the 2018 and 2024 presidential elections were rejected by Venezuela's opposition and several foreign governments, which questioned the credibility of the electoral process.

The latest prisoner releases therefore represent an important but incomplete step in Venezuela's broader political transition, with pressure remaining on the interim government to address the status of those still detained and establish a credible path towards democratic governance.

Trump's '51st State' Remark on Venezuela Ignites Diplomatic Row

US President Donald Trump has triggered a fresh diplomatic storm by suggesting Venezuela could become the 51st state of the United States, posting a graphic on Truth Social depicting the South American nation as such while en route to a summit in China.

The provocative remark, coming days after similar comments to Fox News, has drawn a firm rejection from Venezuela’s acting president, who insisted the country’s sovereignty remains non-negotiable. The episode highlights shifting US-Venezuela ties following political changes in Caracas.

 Trump floats statehood idea

President Trump shared the eye-catching image on his social media platform late on Monday, just as he was travelling for high-level talks with Chinese leaders. The post builds on his earlier interview with Fox News, where he said he was “seriously considering” integrating Venezuela into the US, pointing to its vast oil reserves estimated in the trillions of dollars.

Trump has repeatedly highlighted Venezuela’s strategic importance, citing both its energy resources and recent political realignments after the removal of former President Nicolás Maduro. Officials in Washington view improved access to Venezuelan oil as a potential boost for global energy markets.

Caracas rejects proposal outright

Venezuela’s acting President Delcy Rodríguez pushed back strongly against any notion of annexation. Speaking in The Hague at the International Court of Justice amid an ongoing territorial dispute with Guyana, she declared that Venezuela “has no plans” to become a US state.

“We are a free nation, not a colony,” Rodríguez said, reaffirming the country’s commitment to defending its “integrity, sovereignty, independence and history.” She stressed that while relations with Washington have seen some improvement, national independence remains untouchable.

Improved ties amid tensions

Rodríguez’s government has taken steps to mend fences with the United States since assuming office, including opening up the oil and mining sectors to greater foreign investment. Oil production has reportedly climbed, reaching levels not seen in years, with companies like ExxonMobil showing renewed interest.

Yet her remarks in The Hague underscore persistent sensitivities. Venezuelan officials appear keen on economic cooperation but wary of any perceived threat to sovereignty, a stance rooted in the country’s long history of resisting external influence.

Uranium removal marks security win

In a separate but related development, the US Department of Energy announced the successful removal of 13.5 kg of enriched uranium from Venezuela’s RV-1 research reactor. The joint operation involved US, UK, and Venezuelan authorities, with the material transported securely to North America.

The International Atomic Energy Agency (IAEA) described the effort as a “complex and sensitive operation” and a significant step for regional and global nuclear security. Officials called it a “global security success,” reducing risks associated with surplus highly enriched uranium.

The reactor, which once supported physics research, had seen its operations wind down decades ago, leaving the material as surplus.

Broader implications for region

The controversy arrives at a delicate moment for Latin America. Trump’s comments have divided opinions, with some US lawmakers hailing potential energy gains while critics warn of imperial overreach. In Venezuela, public reactions appear mixed, with many citizens focused more on economic recovery than abstract sovereignty debates.

Analysts note that while turning Venezuela into a US state faces massive legal and practical hurdles — requiring congressional approval and clear consent — the rhetoric itself has already strained diplomatic channels.

What lies ahead

As Trump continues his engagements in China, eyes remain on how Washington and Caracas manage the fallout. Venezuelan authorities are expected to continue balancing economic engagement with firm assertions of independence. The uranium removal, meanwhile, stands as a tangible example of ongoing security cooperation between the two sides.

For now, the “51st state” remark has put the spotlight firmly on US-Venezuela relations, testing the limits of their evolving partnership.