Venezuela's interim president Delcy Rodriguez announced a 25-year oil deal with the U.S. that will develop 17 strategic oilfields, targeting 1.5 million barrels per day. The agreement, negotiated by Trump's administration, grants U.S. control over 55% of a new private company's output, with oil sales funding U.S. strategic reserves and military.
The deal involves a U.S.-Venezean company with 100-year rights to untapped oil fields, potentially drawing $100 billion in investment and $209 billion in taxes. Trump credited Secretary of State Marco Rubio and Defense Secretary Pete Hegseth with negotiating the agreement, which grants the U.S. 55% effective output and rights to buy oil at cost.
The agreement faces legal and diplomatic risks, with experts warning of potential challenges from future administrations. Venezuela's infrastructure remains in disrepair, and experts say the deal will not immediately lower gas prices despite Trump's claims. The U.S. and Venezuela have not yet resolved costs for infrastructure repairs or who will fund them.