Venezuela confirms historic oil deal with US covering 65 billion barrels

The United States just locked down access to 65 billion barrels of Venezuelan oil in a deal valued at roughly $5.4 trillion. President Donald Trump announced the agreement on August 28, describing it as a move that would effectively double American oil reserves without costing taxpayers a dime. Venezuela’s interim President Delcy Rodríguez confirmed the arrangement, calling it historic. The joint venture created under this deal would become the second-largest private oil company on the planet by reserves, trailing only Saudi Aramco. What the deal actually looks like The structure centers on a private joint venture that gives the US 55% effective output rights across 17 strategic oil fields in Venezuela. Those fields sit atop proven reserves totaling more than 65 billion barrels, representing roughly a fifth of Venezuela’s estimated 303 billion barrels in total reserves. The concession period runs 100 years. On the investment side, the agreement is expected to funnel approximately $100 billion in private capital into Venezuela’s oil sector. In return, the Venezuelan government stands to collect more than $209 billion in tax revenue over the life of the arrangement. The negotiations ...