Trump boasts US takeover of Venezuela's vast oil reserves

US President Donald Trump on Friday announced an unprecedented move to take control of a fifth of Venezuela's vast oil reserves, betting that US companies can revive ​the OPEC nation's battered energy industry while cutting prices at the pump back home.

Trump provided few details, saying only ‌that the US had secured majority control of more than 65 billion barrels of Venezuela's proven oil reserves through a partnership with private business "at no cost to the American Taxpayer."

The agreement would dramatically expand the US role in Venezuela's oil industry as the Trump administration seeks to revive production and secure more crude for US refineries. Venezuela holds the world's largest proven reserves but ​produces only about 1.25 million barrels per day, far below potential after years of underinvestment, mismanagement and sanctions.

Trump boasted on Truth Social that "Secretary of State Marco Rubio ​and Secretary of War Pete Hegseth worked closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business" to secure the deal. 

The announcement followed weeks of negotiations. Venezuelan officials are preparing to sign agreements next week granting new ​oil exploration and production rights to US firms.

Sources have told Reuters that a lease model is under consideration, with fields potentially auctioned to US producers, but that the arrangement could face legal and constitutional challenges in Venezuela, where the state retains control over core oil industry activities.

Trump did not disclose the structure of the agreement, the fields or companies involved or how the United States would exercise majority control over the reserves. A list seen by ​Reuters shows the fields are in the Orinoco Belt and Lake Maracaibo regions.

Rubio called the deal a win for both countries, securing stable, low-cost oil for the ​US while bringing nearly $100 billion in private investment and thousands of high-paying jobs for Venezuela.

Rodriguez, who became acting president after the US seized ‌President Nicolas ⁠Maduro in January, said the deal would boost production through 17 strategic fields and generate $209 billion in tax revenue.

"These investments will contribute not only to the recovery and modernization of our industry, but also to our country’s economic growth, the energy security of our hemisphere, and greater balance in international markets," she said.