Venezuela's Interim President Announces 25-Year Energy Agreement with US

Venezuelan interim President Delcy Rodriguez stated on Saturday that an energy agreement with the United States will last for 25 years, aiming to increase crude oil production to 1.5 million barrels per day (bpd) while maintaining the country's sovereignty over its natural resources. In a late-night address, Rodriguez described the accord as a significant deal that would aid in economic revival and enhance government revenue. "This 25-year bilateral project envisages the development of 17 strategic oilfields with a production target of more than 1.5 million barrels per day," Rodriguez said on state broadcaster VTV. She noted that the 1.5 million bpd target is an initial goal and that the broader plan includes the development of eight greenfield oil blocks as part of a larger expansion of the energy sector. President Donald Trump announced on Friday plans for the US to take partial control of Venezuela's oil reserves, suggesting that American companies could help revitalize the country's energy industry while providing a new source of crude to lower US fuel prices. Trump provided limited details, stating that the US secured majority control of over 65 billion barrels of Venezuela's proven oil reserves through a partnership with private businesses. Venezuela, which has the world's largest proven oil reserves, currently produces approximately 1.25 million bpd, significantly below its potential due to years of underinvestment, mismanagement, and sanctions. Rodriguez indicated that the agreement could generate around $209 billion in revenue for Venezuela, based on a benchmark oil price of $65 per barrel, although she acknowledged that crude prices may vary. She mentioned that approximately $19 from each barrel produced and sold under the agreement would directly benefit Venezuela, significantly boosting government revenue. Rodriguez emphasized that the country retains ownership and sovereignty over its natural resources while utilizing capital, technology, and operational expertise to support the recovery of a vital industry impacted by sanctions. Earlier on Saturday, numerous pro-government groups gathered in downtown Caracas to protest against the US presence in Venezuela. Rodriguez welcomed the agreement following Trump's announcement, asserting it would promote economic growth and increase government revenue. Venezuelan officials are preparing to sign agreements next week to grant new oil exploration and production rights to several companies, including US firms. Sources close to the negotiations indicated that Chevron is among the companies expected to finalize discussions to transition its Venezuelan joint ventures into the new energy framework.