The United States has entered into a new oil agreement with Venezuela that could reshape energy ties between the two countries. Reuters reported that President Donald Trump announced the deal on August 28, saying it involves access to a large share of Venezuela’s proven oil reserves.
Under the arrangement described by Trump, private companies are expected to play a major role in developing Venezuela’s oil sector. Reuters said the agreement could involve tens of billions of barrels of reserves, although key details about ownership, legal structure and implementation remain unclear.
Venezuela has some of the world’s largest proven crude oil reserves, but years of underinvestment, sanctions and aging infrastructure have limited production. Any effort to significantly increase output would likely require substantial capital and time.
Venezuela’s interim leader Delcy Rodriguez has welcomed the agreement, while U.S. officials have presented it as a way to expand energy supplies and encourage private investment. The announcement marks a significant change in the economic relationship between Washington and Caracas.
