Venezuela's energy agreement with US will last for 25 years
What's the story
Venezuela's interim President, Delcy Rodriguez, has announced a long-term energy agreement with the United States. The deal is set to last for 25 years and aims to ramp up crude production to 1.5 million barrels per day (bpd). Rodriguez described the agreement as a "historic" step that would help revive the Venezuelan economy and boost government revenue.
Project details
Rodriguez clarifies production target is just the beginning
The energy agreement includes the development of 17 strategic oilfields, with a production target of over 1.5 million bpd.
Rodriguez said this figure is just for the bilateral deal between Venezuela and the US.
She also clarified that this initial target is just a starting point, as there are plans to develop eight greenfield oil blocks in a larger expansion of Venezuela's energy sector.
Strategic partnership
Trump announces partnership to take majority control of Venezuela's reserves
On Friday, US President Donald Trump announced a partnership with private business to take majority control of over 65 billion barrels of Venezuela's proven oil reserves.
This move is aimed at reviving the South American nation's struggling energy industry and providing a new source of crude to help lower US fuel prices.
Rodriguez welcomed this agreement, saying it would boost economic growth and increase government revenue.
Economic impact
Rodriguez expects $209 billion in revenue for Venezuelan state
Despite having the world's largest proven oil reserves, Venezuela currently produces only about 1.25 million bpd due to years of underinvestment, mismanagement, and sanctions.
Rodriguez said the new agreement could generate around $209 billion in revenue for the Venezuelan state at a benchmark oil price of $65 per barrel.
She emphasized that around $19 from each barrel produced and sold under this arrangement would go directly to Venezuela, significantly boosting government revenue.
Resource sovereignty
We will maintain ownership and sovereignty over natural resources
Rodriguez stressed that the country maintains "ownership of and sovereignty" over its natural resources.
She said this deal would leverage capital, technology, and operational expertise to help revive a strategic industry that has been heavily impacted by sanctions.
This statement comes as dozens of pro-government groups protested against the US presence in Venezuela earlier on Saturday.
Upcoming agreements
New agreements to be signed next week
Venezuelan officials are preparing to sign new agreements next week, granting oil exploration and production rights to several companies, including those from the US.
Chevron is among the companies expected to finalize talks on transitioning its Venezuelan joint ventures into this new energy framework.
This move further highlights Venezuela's commitment toward expanding its energy sector under this long-term agreement with the US.