US President Donald Trump on 29 August announced that the United States and Venezuela have reached what he described as the single largest oil agreement in world history, claiming it secures majority American control over more than 65 billion barrels of proven oil reserves at no direct cost to US taxpayers. The announcement, made via a post on Truth Social, came as US oil prices have risen sharply following the outbreak of the Iran conflict in late February.

What Trump Claimed

In his Truth Social post, Trump wrote that the deal “MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future.” The agreement, he said, was structured through a partnership with private business, securing majority US control over Venezuelan reserves “at no cost to the American Taxpayer.”

Notably, Trump did not name the private entities involved, nor did he provide a timeline for production ramp-up or specify the regulatory framework governing the arrangement.

Venezuela’s Position

Venezuela’s acting president Delcy Rodriguez separately confirmed the deal on Friday, calling it “a historic agreement” aimed at promoting investment in the recovery and reconstruction of the country’s strategic hydrocarbons infrastructure. In a government statement, Rodriguez said the agreement would “strengthen bilateral relations and facilitate a major flow of investment into the country’s energy sector.”

According to the Venezuelan statement, the deal covers the development of 17 strategic fields with a proven potential of 65 billion barrels of oil, an investment commitment of more than $100 billion, and projected tax revenues of more than $209 billion for the Venezuelan state.

Background and Context

Venezuela holds the world’s largest proven oil reserves, though chronic underinvestment, US sanctions, and political instability have kept production well below capacity for years. On 29 January, Rodriguez had announced a partial reform of the country’s hydrocarbons law to allow greater private participation in the oil sector — a legislative shift that reportedly laid the groundwork for Friday’s announcement.

This comes amid a sharply altered bilateral relationship. On 3 January, US military forces launched a large-scale strike against Venezuela and forcibly seized Venezuelan President Nicolas Maduro and his wife before transporting them to New York, according to reports. Rodriguez has been serving as acting president since that development.

Why It Matters

If verified and operationalised, the agreement would represent one of the most consequential energy realignments in decades. US oil prices have already risen sharply since the Iran conflict erupted in late February, stoking inflation concerns. Access to Venezuelan reserves at scale could, in theory, ease supply pressure — though analysts would note that converting proven reserves into flowing barrels requires years of infrastructure investment and political stability, neither of which is guaranteed in Venezuela’s current circumstances.

The deal’s structure — majority US control through private operators — also raises questions about sovereignty and the long-term enforceability of the arrangement, particularly given Venezuela’s history of nationalisation and the extraordinary circumstances under which the current government is operating.

What Comes Next

No formal treaty text or signed agreement document has been publicly released as of the announcement. Industry bodies and energy analysts are expected to scrutinise the terms closely, particularly the investment timeline, the identity of the private US operators, and the mechanism for revenue-sharing with the Venezuelan state. The $100 billion investment figure, if committed, would rank among the largest single energy infrastructure pledges in history.