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President Donald Trump announced the agreement on August 28 via a post on Truth Social, describing it as the biggest oil deal in world history that would more than double American oil reserves while increasing supply and lowering gasoline prices for consumers. The pact was negotiated at his direction by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth together with Venezuela’s acting President Delcy Rodríguez through a partnership with private business, Trump stated. A U.S. official familiar with the contours of the deal, speaking on condition of anonymity, said the arrangement creates a new private company in which Washington secures 55 percent effective output split between an equity stake and rights to purchase oil at cost.
The official added that Rodríguez granted the joint venture 100-year concessions over fields containing 63 billion barrels of proven reserves, positioning the new entity as the world’s second-largest corporate holder of such reserves after Saudi Aramco. Production from the venture is expected to contribute to filling the U.S. strategic petroleum reserve and meeting military supply requirements. According to the Venezuelan government’s statement, the agreement focuses on the development of 17 strategic fields.
Rodríguez confirmed the deal in a statement posted to social media, calling it historic and predicting it would have a significant impact on the nation’s revival. Her office projected that the projects would attract more than $100 billion in investment and generate over $209 billion in taxes for the state. The acting president noted that these investments would support recovery and modernization of the industry along with broader economic growth.
Rubio described the agreement as a huge win for both the American and Venezuelan people in a post on X. He said it demonstrates how the administration’s foreign policy secures stable reserves and low-cost oil in the hemisphere while lowering gas prices at home. For Venezuela, Rubio added, the deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs and drive reconstruction of the country’s economy.
U.S. Energy Information Administration figures place Venezuela’s total proven oil reserves at 303 billion barrels, the largest globally, meaning the deal covers roughly 21 percent of that total. Domestic U.S. proven crude reserves stand at around 48 billion barrels, a baseline that the new arrangement would effectively more than double under American influence. The timing of the announcement aligns with ongoing pressure on global supply chains.
The pact comes amid a six-month conflict with Iran that has disrupted a fifth of world crude supply, pushing average U.S. gasoline prices above four dollars a gallon ahead of midterm elections. The strategic petroleum reserve has fallen below 300 million barrels this year following repeated drawdowns, according to administration data. Venezuelan officials are preparing to sign related agreements with U.S. firms next week to advance exploration and production rights.
