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.

Trump Announces India-Venezuela Oil Deal; Reliance in Talks with US for Approval

In a statement that could reshape global oil trade flows, former US President Donald Trump has claimed that India has finalized a deal to purchase crude oil from Venezuela instead of Iran. Speaking to reporters, Trump stated, “We have already made a deal. India is coming and will buy oil from Venezuela, not from Iran,” adding that China was also welcome to join the arrangement. The Indian government has not yet officially commented on the claim.

The announcement highlights the ongoing geopolitical maneuvering in global energy markets, where major consumers like India are navigating US sanctions to secure affordable crude supplies.

India’s On-Again, Off-Again Trade with Venezuela

India, the world’s third-largest oil consumer, historically relied on Venezuela for a portion of its imports—about 6% before 2019. That year, stringent US secondary sanctions forced India and other nations to halt Venezuelan crude purchases. While imports briefly resumed after a partial easing of sanctions in 2023-24, renewed US restrictions in May 2025 slashed India’s share of Venezuelan oil to a mere 0.3% by early 2026.

This historical context makes Trump’s claim significant. A formal India Venezuela oil deal would mark a major policy shift, providing India with a alternative source amid Western pressure to reduce dependence on Russian oil.

Reliance Industries Leads Charge for US Approval

Adding commercial weight to the political statement, Indian refining giant Reliance Industries has reportedly initiated talks with US authorities. The company is seeking a license to resume importing Venezuelan crude to its vast Jamnagar refinery complex.

Motivation: The move is driven by the dual need to diversify away from Russian oil and secure cost-effective feedstock for its 1.4 million-barrel-per-day refinery.

Previous Trade: Reliance last received a Venezuelan shipment in May 2025, averaging 63,000 barrels per day, before US license suspensions halted the trade.

Current Efforts: Sources indicate Reliance representatives are actively engaged with both the US State and Treasury Departments to obtain the necessary approvals.

This behind-the-scenes corporate diplomacy underscores the real-world business interests aligning with Trump’s political pronouncements.

Global Implications and Market Stability

The potential reopening of Venezuelan oil to a major buyer like India carries wider implications:

For Venezuela: Access to the Indian market would provide a crucial economic lifeline, though proceeds would remain tightly controlled under US oversight. Trump recently claimed Venezuela would hand over 30-50 million barrels to the US, with sales proceeds managed “for the benefit” of both nations.

For Global Oil Flow: While Venezuela holds the world’s largest reserves, its current global supply contribution is minimal. Redirecting even a small volume to a large consumer can impact trade patterns and pricing in regional markets.

For India: Securing Venezuelan crude would enhance energy supply diversity. However, analysts caution any deal requires careful navigation of the complex US sanctions framework to avoid financial repercussions.

The Road Ahead

While Trump’s announcement suggests a finalized India Venezuela oil deal, implementation hinges on formal US approvals and official confirmation from New Delhi. The proactive steps by Reliance Industries indicate serious commercial intent. For now, the global energy market watches closely, as the intersection of geopolitics, sanctions policy, and corporate strategy continues to dictate the flow of the world’s most crucial commodity.