President Donald Trump said Friday that the United States has reached a major agreement with Venezuela that could give an American-backed private company access to the South American nation's vast oil reserves.
Trump described the agreement as the “biggest oil deal in world history”, saying it was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and Venezuela's acting President Delcy Rodríguez.
Rodríguez's government said the agreement covers the development of 17 oil fields with proven potential of 65 billion barrels. It estimated that the deal could attract around $100 billion in investment and generate more than $209 billion in tax revenue for Venezuela.
Under the agreement, the United States would partner with an unnamed private operator to establish a new company to develop the oil fields, according to a U.S. official familiar with the deal.
The official, who spoke on condition of anonymity because he was not authorized to discuss the agreement publicly, said Rodríguez had granted the company rights to develop the fields for 100 years.
The company would give the United States an effective 55% share of its output, including an ownership stake and the right to purchase oil at cost, the official said. If realized, the company would become the world's second-largest corporate holder of proven oil reserves after Saudi Aramco.
Trump under pressure over high fuel prices
The announcement comes as Trump faces pressure to reduce high fuel prices in the United States amid the ongoing war in Iran and disruptions to global energy supplies.
The U.S. government has been drawing from its strategic petroleum reserves, which fell below 300 million barrels in early August, more than 100 million barrels lower than at the beginning of 2026.
The conflict involving the United States, Israel and Iran has sharply reduced the flow of Gulf oil through the Strait of Hormuz, a major global energy route that previously carried about 20% of the world's petroleum.
The average U.S. gasoline price was around $4.09 per gallon on Friday, compared with $3.21 a year earlier, according to AAA.
However, experts said the Venezuelan agreement is unlikely to bring immediate relief at the gas pump. Increasing Venezuela's oil production substantially would require years of investment to repair and expand its badly damaged infrastructure.
Major U.S. oil companies could also be reluctant to return because of Venezuela's political uncertainty and their previous experiences operating in the country.
After Maduro's removal, Trump met oil executives at the White House and urged them to return to Venezuela. Although executives showed interest, some remained cautious. ExxonMobil CEO Darren Woods had previously described Venezuela as an “un-investable” market.
Trump has maintained that his administration has helped bring greater stability to Venezuela. He has also accused the country of taking U.S. oil after former President Hugo Chávez nationalized hundreds of foreign-owned assets, including those belonging to American oil companies.
Venezuela opens oil sector to private investment
Rodríguez moved to open Venezuela's oil industry to greater private investment after taking power, reversing a key policy of the socialist movement that has governed the country for more than two decades.
Rubio said the new agreement would bring billions of dollars in private investment to Venezuela while helping reduce fuel prices in the United States.
The U.S. official said oil purchased from the new company would be used to replenish the American strategic petroleum reserve and for military purposes.
Venezuela possesses the world's largest proven crude oil reserves, estimated at around 303 billion barrels, or approximately 17% of global reserves, according to the U.S. Energy Information Administration.
Most of the country's oil deposits have already been identified, but aging infrastructure has severely limited production. Venezuela currently accounts for only about 1% of global oil output.
Former Venezuelan President Nicolás Maduro remains jailed in the United States. He has pleaded not guilty to federal narcoterrorism and drug trafficking charges.