17 Oilfields, 25 Years: Venezuela Unveils Scale of U.S. Energy Pact

Venezuela’s interim President Delcy Rodriguez said Saturday that a new energy agreement with the United States will run for 25 years and cover the development of 17 strategic oilfields, marking a major step in Washington and Caracas’ efforts to revive the country’s oil industry.

Rodriguez said on state broadcaster VTV that the project has a production target of more than 1.5 million barrels per day. She described it as a “historic” deal that would help revive the economy and boost government revenue.

The agreement also includes eight greenfield oil blocks, according to Rodriguez. She estimated that the arrangement could generate about $209 billion for the Venezuelan state, based on a benchmark oil price of $65 per barrel. Under the deal, $19 from every barrel of oil produced and sold to the United States will flow to Caracas.

U.S. Seeks Majority Control

The announcement followed U.S. President Donald Trump’s statement Friday that Washington had reached an agreement involving more than 65 billion barrels of proven Venezuelan oil reserves.

A U.S. official told CBS News that Rodriguez granted a private joint venture a 100-year concession to operate in oil fields that make up 65 billion barrels of petroleum.

The venture is described as a joint project of the U.S. government and an experienced private operator in Venezuela. The U.S. government will control 55% of the joint venture, split between equity in the venture and the ability to obtain oil from it at cost.

The reported concession period and ownership structure have not been fully detailed in publicly released U.S. documents, making the precise terms of the arrangement an area requiring further verification.

Trump announced the agreement Aug. 28 in a post on Truth Social, saying Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, working with Rodriguez, had “secured majority U.S. control of more than 65 billion barrels of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer.” He said the transaction would increase U.S. oil reserves and supply.

Rubio said the agreement would bring nearly $100 billion in private investment to Venezuela.

Venezuela Says It Retains Sovereignty

Rodriguez moved to address concerns over whether the agreement would affect Venezuela’s ownership of its natural resources.

“One thing must be absolutely clear: Venezuela retains ownership and sovereignty over its resources,” Rodriguez said in a speech broadcast on state television.

Venezuela will keep ownership of its natural resources “while leveraging capital, technology and operational expertise to support the recovery of a strategic industry that has been severely affected by sanctions,” she said.

The distinction between ownership of Venezuela’s natural resources and operational or financial control over specific oil projects is central to the agreement. Public reporting so far has provided only limited detail on the contracts governing the projects.

Oil Industry Faces Long Recovery

The agreement comes as Venezuela seeks to rebuild an oil industry that has suffered from years of declining production, sanctions, underinvestment and deteriorating infrastructure.

Venezuela holds the world’s largest proven crude oil reserves, with more than 300 billion barrels, according to U.S. government estimates cited by CBS News. The reserves covered by the new arrangement therefore represent a substantial portion of the country’s total proven resources.

The production target of more than 1.5 million barrels per day would require substantial investment and infrastructure work. Rodriguez said the broader plan includes eight new oil blocks in addition to the 17 strategic fields.

The scale of the planned investment also means that the agreement’s effect on actual oil production is likely to depend on how quickly companies can develop the fields, restore infrastructure and bring additional capacity online.

Political Pressure in Caracas

The agreement has also generated political opposition inside Venezuela.

Pro-government groups gathered in Caracas on Saturday to protest against the U.S. presence in the country and criticize the energy arrangement, according to reports cited in the supplied material.

The political debate centers in part on whether greater U.S. involvement in Venezuela’s oil industry is compatible with the government’s assertion that the country retains sovereignty over its resources.

Rodriguez has presented the agreement as a way to attract capital and technology while maintaining Venezuelan ownership of natural resources.

Venezuela Prepares New Oil Production Agreements

Venezuelan officials are expected to move toward agreements granting exploration and production rights to companies involved in the planned projects. Reuters reported that companies including U.S. oil producer Chevron could receive new rights under agreements expected to be signed the following week.

The immediate impact on oil exports is likely to be limited because developing new fields and restoring Venezuela’s production infrastructure will require substantial investment and time.

For Washington, the agreement provides a framework for greater access to Venezuelan crude. For Caracas, the key test will be whether the planned investment translates into higher production, increased state revenue and a sustained recovery of the country’s oil industry.