US President Donald Trump has announced what he called the “biggest oil deal in world history” with Venezuela, saying the United States has secured majority control over more than 65 billion barrels of the South American country's proven oil reserves.

Trump said the agreement was negotiated by US Secretary of State Marco Rubio and Secretary of War Pete Hegseth in coordination with Venezuelan interim President Delcy Rodriguez and through a partnership with private business. He claimed the arrangement would come at no cost to American taxpayers.

The announcement represents a major expansion of US involvement in Venezuela's oil industry and comes as Washington seeks additional crude supplies amid elevated US fuel prices and disruptions to global energy markets.

Trump Hails Historic Deal

Trump announced the agreement in a post on Truth Social, describing it as an unprecedented transaction that would more than double US oil reserves and eventually help lower gasoline prices for American consumers.

The US president did not initially provide detailed information about the structure of the agreement, the companies involved or how Washington would exercise control over the reserves.

According to Reuters, the deal follows weeks of negotiations aimed at giving American companies long-term access to Venezuelan oil fields and ensuring crude supplies for US refineries.

65 Billion Barrels Involved

The agreement covers more than 65 billion barrels of proven Venezuelan oil reserves, equivalent to roughly one-fifth of Venezuela's total proven reserves.

Venezuela has an estimated 303 billion barrels of proven crude reserves, the largest such reserve base in the world, according to the US Energy Information Administration. However, years of underinvestment, sanctions, mismanagement and deteriorating infrastructure have severely constrained production.

The country currently produces only around 1.25 million barrels per day, well below its potential.

Private Partnership Model

The precise legal and financial structure remains unclear.

Reuters reported that one model under consideration would involve Venezuelan oil fields being leased to US producers, potentially through new exploration and production rights. The fields identified in reporting are located in the Orinoco Belt and Lake Maracaibo regions.

Axios described the arrangement as a form of public-private partnership involving the US government, Venezuela and private companies. One US government source said the arrangement would provide the United States with equity and access to crude through an off-take arrangement.

Some details remain subject to further agreements and legal review.

Venezuela Expects Major Investment

For Caracas, the agreement is being presented as a route towards rebuilding the country's damaged oil industry.

Venezuelan officials said the development of 17 oil fields could generate nearly $100 billion in private investment and more than $209 billion in tax revenue for the Venezuelan treasury.

Interim President Delcy Rodriguez welcomed the agreement, saying it could play a major role in the recovery and modernisation of Venezuela's energy sector.

US Secretary of State Marco Rubio also described the deal as a major benefit for both countries, saying it would attract investment, create jobs and contribute to Venezuela's economic reconstruction.

US Seeks Cheaper Oil

The agreement comes at a difficult time for the US energy market.

American consumers are facing elevated gasoline prices, while the conflict involving Iran has disrupted oil flows through the Strait of Hormuz, a major global energy chokepoint.

US gasoline prices were around $4.09 per gallon on Friday, compared with approximately $3.21 a year earlier, according to AAA data cited by AP. The US Strategic Petroleum Reserve also fell below 300 million barrels earlier this month.

Trump has therefore increasingly focused on securing additional crude supplies and bringing more oil into the US market.

Lower Prices Not Immediate

Despite Trump's promise of lower gasoline prices, analysts caution that the Venezuelan deal is unlikely to transform US fuel prices immediately.

Venezuela's oil infrastructure has suffered years of deterioration, while its heavy crude requires substantial investment in production, transportation and refining capacity.

Reuters reported that experts remain uncertain whether the proposed arrangement will overcome longstanding obstacles to large-scale investment, including political uncertainty, inadequate infrastructure and limited export capacity.

A significant increase in Venezuelan production could therefore take years rather than months.

Venezuela Opens Oil Sector

The agreement follows major changes in Venezuela's energy policy under Rodriguez's interim administration.

Rodriguez has opened the country's oil sector to greater private participation, reversing policies associated with decades of state dominance.

Venezuela's oil industry was nationalised in the 1970s, while former President Hugo Chavez later strengthened state control and forced foreign producers into state-led arrangements. Some foreign-owned assets were subsequently expropriated.

The latest agreement signals a dramatic shift towards greater participation by US companies and private investors.

Legal Questions Remain

The proposed arrangement could still face legal and constitutional challenges in Venezuela.

Reuters reported that analysts want greater clarity on the agreement's legal basis, ownership structure and financial terms before assessing whether it can attract investment on the scale promised.

The country's damaged infrastructure and the uncertain political environment could also complicate efforts to bring major US oil companies back into Venezuela.

These issues will determine how quickly the announced agreement can translate into higher production and increased exports.

What Happens Next

Venezuelan officials are preparing to grant new exploration and production rights to oil companies, particularly US firms, with further agreements expected in the coming days.

For Washington, the immediate objective is to secure a reliable source of crude, strengthen energy security and eventually ease pressure on US fuel prices.

For Caracas, the priority is attracting capital to rebuild an oil industry that remains central to the country's economy.

Trump's announcement has therefore created the framework for one of the most consequential energy deals in the Western Hemisphere, but its ultimate impact will depend on how the agreement is structured, whether legal challenges are overcome and how quickly Venezuela can restore its oil production capacity.