USA-Venezuela Oil Agreement (August 2026)

The USA-Venezuela Oil Agreement is a deal announced on 28 August 2026 by US President Donald Trump, under which the United States would gain majority control over Venezuela’s proven oil reserves exceeding 65 billion barrels through a partnership with the private sector.^【1】 Trump described the agreement in a social media post as the "largest oil deal in world history". Venezuela’s interim head of state, Delcy Rodríguez, also on the same day, characterized the agreement as "historic" and stated that it envisages the development of 17 strategic oil fields with proven potential of 65 billion barrels.^【2】

The agreement was made public on Friday 28 August 2026 through a post by Trump on the Truth Social platform.^【3】 Trump stated that the US Secretary of State, Marco Rubio, and the Secretary of Defense (Secretary of War), Pete Hegseth, had worked closely with Venezuela’s interim head of state Delcy Rodríguez and through a partnership with the private sector, secured majority US control over Venezuela’s proven oil reserves exceeding 65 billion barrels at no financial cost to US taxpayers.

In his post, Trump used the phrase "We have just signed the largest oil deal in world history with Venezuela!"^【4】 and claimed that the agreement would double US oil reserves, significantly increase oil supply, and substantially lower gasoline prices for Americans in the long term.^【5】

On the same day, the Venezuelan government issued a statement confirming the agreement. In a Telegram post, Rodríguez stated that the agreement would have a major impact on the country’s revival and thanked Trump and Rubio for their contributions to the process.^【6】

According to the Venezuelan government’s statement, the agreement envisages the development of 17 strategic oil fields with proven potential of 65 billion barrels. The same statement indicated that the agreement would bring more than $100 billion in investment into Venezuela’s oil industry and generate over $209 billion in tax revenue for the state. Rodríguez noted that the agreement would enable a significant increase in oil production through the participation of private sector operators.^【7】

According to US government statements, under the agreement a new private company will be established through a partnership between the US government and an unnamed private operator active in Venezuela, and this company will manage the reserves in question. According to a US official familiar with the matter, Rodríguez granted the company 100-year rights to develop the oil fields. The same official stated that the agreement gives the United States ownership of 55 percent of the actual output of the new private company, including the right to purchase oil at cost price based on equity stakes. The official also stated that the newly formed company would become the world’s second largest private oil company after Saudi Aramco in terms of proven reserves.^【8】

A White House official speaking to CNN also confirmed that the agreement would give the United States ownership of 55 percent of the actual output of the new private venture. The official stated that the US government has secured guarantees for more than half the value of the new company, split between equity ownership and the right to purchase oil at cost price. It was stated that the stable and cost-price oil supply generated by the company would be used to fill the US Strategic Petroleum Reserve and meet the US military’s supply needs.^【9】

Trump has not disclosed any details regarding the structure of the agreement, the specific fields involved, the companies participating, or the precise mechanism by which the United States would exercise majority control over the reserves.^【10】 The official text of the agreement between Washington and Caracas has also not been made public.

US Secretary of State Marco Rubio, evaluating the agreement on social media, stated that it represents a major achievement for both the American and Venezuelan people.^【11】 Rubio said the agreement would bring approximately $100 billion in private investment to Venezuela, create thousands of high-paying jobs, and contribute to the rebuilding of the country’s economy.^【12】

In his statement, Rodríguez said the purpose of the agreement is to restore Venezuela to its position as a major energy producer, aiming to use the country’s vast reserves to serve national development, job creation, increased incomes for workers, and public welfare.^【13】 In another statement, Rodríguez said, "These investments will not only revitalize and modernize our industry but also contribute to our country’s economic growth, energy security in our hemisphere, and greater balance in international markets."^【14】

Chevron, the only US oil company currently operating in Venezuela, has not commented on Trump’s announcement.

Before the August 2026 agreement, a more limited oil sales arrangement between the United States and Venezuela became public in January 2026. On the night of 6 January 2026, Trump announced via Truth Social that the Venezuelan government under Rodríguez’s leadership was ready to transfer 30 to 50 million barrels of oil for sale on the US market, describing the oil as "high-quality and authorized" in the United States.^【15】

Venezuela’s state-owned oil company, PDVSA, stated in a press release on 7 January 2026 that negotiations were underway regarding the sale of oil volumes to the United States, and emphasized that the deal was "clearly commercial, lawful, transparent, and mutually beneficial." PDVSA added that the marketing of crude oil would follow structures similar to previous agreements with international companies such as Chevron in the United States.

On the same day, White House Press Secretary Karoline Leavitt announced that the US government had begun marketing Venezuelan crude oil on global markets for US benefit and had reached agreements with the world’s leading commodity traders and major banks to facilitate these sales and provide financial support.^【16】

On 3 January 2026, US military forces conducted a large-scale operation in Venezuela, forcibly detaining then-President Nicolás Maduro and his wife Cilia Flores and transporting them to New York.^【17】 Maduro and his wife are scheduled to be tried in New York in 2027 on various charges including narcoterrorism and drug trafficking; both have denied the allegations.^【18】

Following the operation, Trump stated that American companies would work to rebuild Venezuela’s oil industry and convened oil company executives at the White House to encourage their return to Venezuela. At the time, ExxonMobil CEO Darren Woods described the country as "not investable."^【19】

In January 2026, on 29 January, Rodríguez announced that a partial reform of the hydrocarbons law, designed to facilitate foreign companies’ participation in Venezuela’s oil sector, had been approved.^【20】 This amendment marked a reversal of one of the fundamental principles of the socialist movement that had governed the country for over two decades: opposition to privatization.

According to data from the US Energy Information Administration (EIA), Venezuela possesses the world’s largest proven oil reserves, estimated at approximately 303 billion barrels, equivalent to about 17 percent of global oil reserves. Experts note that, unlike other regions of the world, Venezuela’s reserves are largely mapped and well understood. However, the country’s neglected oil infrastructure significantly limits its production capacity. Venezuela currently produces only about 1 percent of global oil.^【21】 Venezuela’s daily crude oil production stands at approximately 1.25 million barrels.^【22】