Kathmandu— President Donald Trump announced a deal granting the United States majority control of more than 65 billion barrels of proven oil reserves in Venezuela, while also promising to revitalize the OPEC nation’s energy industry. The agreement follows weeks of negotiations intended to give American companies long-term access to Venezuelan oilfields and guarantee a crude supply for US refineries. Trump claims the “historic transaction” will double American oil reserves and substantially lower gas prices, at no cost to American taxpayers.

Deal Details Remain Unclear

Trump announced the agreement via Truth Social, naming Secretary of State Marco Rubio and Secretary of War Pete Hegseth as key negotiators alongside Venezuelan Interim President Delcy Rodriguez. He did not disclose specifics regarding the structure of the deal, which fields are involved, or the companies participating. The announcement indicated a partnership with private business to secure majority US control of the reserves.

Economic Benefits Claimed By Both Sides

Venezuelan Interim President Delcy Rodriguez welcomed the agreement, anticipating approximately $209 billion for the state’s treasury. Secretary of State Marco Rubio described the deal as a win for both countries, stating on X that it would secure stable, low-cost oil for the US and reduce petrol prices. He also projected nearly $100 billion in private investment for Venezuela, along with thousands of high-paying jobs and economic rebuilding.

Venezuela’s Oil Potential

Venezuela holds the world’s largest proven oil reserves, but current production sits at only 1.25 million barrels per day – significantly below its potential due to years of underinvestment, mismanagement, and sanctions. The new deal represents a dramatic expansion of Washington's role in Venezuela’s oil industry as the Trump administration seeks to revive production and secure additional crude for US refineries. Sources previously indicated that a lease model was being considered, with fields potentially auctioned to US producers.

Potential Challenges Ahead

While the agreement is expected to be formalized next week with the signing of new exploration and production rights agreements, it could face legal and constitutional challenges in Venezuela. The state currently retains control over core oil industry activities, which may complicate the implementation of a majority US control arrangement.

Venezuelan officials are preparing to sign agreements next week, but details regarding the structure of the deal remain largely undisclosed.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.