Kathmandu— US President Donald Trump announced on Friday evening via Truth Social that the United States would take partial control of sixty-five billion barrels of Venezuelan oil through a deal negotiated by Secretary of State Marco Rubio with interim Venezuelan President Delcy Rodríguez. The agreement, which includes a provision for Pentagon ownership and operational rights, has sparked widespread backlash in Venezuela from both leftists and conservatives who view it as an imperial overreach.

Deal Details

The deal reportedly takes the form of a one hundred-year lease across seventeen oil fields, including undeveloped heavy crude sites in the Orinoco Belt and developed light crude sites in Lake Maracaibo. However, Delcy Rodríguez later clarified that it was actually a twenty-five-year lease with a baseline price of $65 per barrel of oil. The agreement also includes unprecedented provisions allowing the Pentagon’s Office of Strategic Capital to take a 35 percent ownership stake and rights to buy 20 percent of the output at cost.

Political Reaction

The deal has united opposition across political lines in Venezuela. Leftists oppose it for its imperial designs, while conservatives are angry about being bypassed in resource management. Historian Miguel Tinker Salas noted that this deal has created a small measure of consensus in a country known for its polarization: “There’s greater indignation from both the Right and the Left who feel that the country has been sold out.”

Historical Context

The deal is reminiscent of Venezuela's colonial past, where dictators like Juan Vicente Gómez granted sweeping concessions to foreign oil trusts. Political economist Antulio Rosales pointed out that this contract takes the country back to an era when oil was first discovered and decisions were made on behalf of the nation by autocrats.

Economic Implications

The deal has implications for both Venezuela’s economic future and its environmental impact. Ricardo Vaz, editor at Venezuelanalysis, noted that it strips Petróleos de Venezuela (PDVSA) of its core function and subordinates the Venezuelan energy sector to US interests. This move ties both countries to the fossil fuel industry at a time when renewable alternatives are crucial for global development.

(With inputs from Jacobin)

Originally published on abcnews.com.np.