Venezuela to jointly exploit oil with the US for 25 years

Venezuela's interim president announced that the oil agreement with the US would be effective for 25 years, aiming to boost production to 1,5 million barrels per day.

Interim President Delcy Rodriguez announced on 29/8 a 25-year bilateral energy agreement with the United States. This project aims to develop 17 strategic oil fields, targeting a production of 1,5 million barrels per day.

Rodriguez hailed the agreement as "historic", stating it would revitalize the economy, increase budget revenue, and shape the country's future direction.

The interim president emphasized that the 1,5 million barrels per day target is only an initial goal. A broader plan includes developing 8 new oil fields, part of an effort to expand Venezuela's energy sector.

Interim President Delcy Rodriguez in Caracas, Venezuela on 2/7. *Photo: Reuters*

On 28/8, President Donald Trump stated that the US had gained control of over 65 billion barrels of Venezuelan oil through cooperation with private enterprises.

Rodriguez indicated that the agreement could generate approximately 209 billion USD for Venezuela, based on a reference oil price of 65 USD per barrel, though she acknowledged potential price fluctuations. She noted that Venezuela would directly receive approximately 19 USD from each barrel of oil extracted and sold under the agreement, significantly boosting national revenue.

She affirmed Venezuela's continued "ownership and sovereignty" over its natural resources, while leveraging foreign capital, technology, and operational experience to restore its strategic oil and gas industry.

Venezuela holds the world's largest proven oil reserves but currently produces only about 1,25 million barrels per day. This figure is significantly below its potential due to years of underinvestment, mismanagement, and international sanctions.