In late August 2026, Washington and Caracas reached an unprecedented agreement on the development of Venezuelan energy resources. Under the deal, American private companies will gain control over the development of 17 strategic fields in Venezuela with proven reserves of more than 65 billion barrels of oil. The event has already been dubbed "the largest oil deal in world history."
Details and Terms of the Deal
The agreement does not involve the direct transfer of the fields to US state ownership. Instead, a joint company is planned with a private operator, to which the Venezuelan authorities will grant rights to develop the resources for a period of 100 years. The American side will receive 55% control in this enterprise, which includes the right to purchase extracted oil at cost.
The volume of reserves covered by the deal amounts to approximately one-fifth of all proven oil reserves of Venezuela, which are estimated at 303 billion barrels and are the largest in the world. For comparison, the proven reserves of the United States itself at the end of 2024 amounted to about 46 billion barrels.
Positions of the Parties
US President Donald Trump, announcing the deal, stated that it would more than double American oil reserves, significantly expand supplies, and substantially reduce gasoline prices for all Americans for years to come. He also emphasized that the partnership with private companies would achieve these goals without any cost to American taxpayers.
The Venezuelan side also expressed satisfaction with the agreements reached. Interim President of Venezuela Delcy Rodríguez confirmed the conclusion of the deal, noting that the development of 17 fields would attract more than 100 billion dollars in private investment. According to estimates by the Caracas authorities, the project will provide over 209 billion dollars in tax revenues to the state budget and create thousands of high-paying jobs.
Historical Context
The implementation of such a large-scale agreement became possible against the backdrop of radical political changes in Venezuela. In January 2026, American military forces conducted an operation to detain the country's former leader Nicolás Maduro. After that, Delcy Rodríguez came to power, who already in late January initiated a reform of oil legislation. This reform weakened the long-standing state monopoly in the industry that existed under Hugo Chávez and Nicolás Maduro and opened the sector to private foreign investment.
Economic Realities and Challenges
Despite optimistic statements, experts point to serious obstacles to the rapid implementation of the deal. Venezuela has the largest reserves in the world, but a significant portion of them is extra-heavy oil from the Orinoco Belt, the extraction and processing of which requires expensive and complex infrastructure.
Due to years of underinvestment, equipment degradation, and international sanctions, the country at the beginning of 2026 was producing only about 1,1–1,25 million barrels per day, which is approximately 1% of world production. For comparison, in the 1970s this figure reached 3,5 million barrels per day.
Analysts note that the promised reduction in gasoline prices is unlikely to happen quickly. Increasing production at many of the 17 fields will require years and multi-billion-dollar investments in restoring wells, pipelines, power grids, and logistics chains. Nevertheless, this agreement marks a potential turning point both for US energy security and for attempts to revive Venezuela's economy.
