Venezuela has unveiled a sweeping 25-year energy agreement with the United States covering 17 strategic oilfields and an initial production target of more than 1.5 million barrels a day. Acting President Delcy Rodriguez says the arrangement will bring badly needed capital and technology into Venezuela while preserving national ownership of its oil - although the scale of US control being claimed by President Donald Trump has already raised questions over exactly where sovereignty ends and control begins.
INR Report: Based on reporting by RT HERE
Venezuela's acting president Delcy Rodriguez says Caracas will retain ownership and sovereignty over its enormous oil resources under a new long-term agreement with Washington that could significantly reshape both Venezuela's economy and the global energy market.
The agreement runs for 25 years and provides for the development of 17 strategic Venezuelan oilfields containing around 65 billion barrels of proven crude reserves. Rodriguez said the initial objective is to lift production associated with the bilateral agreement to more than 1.5 million barrels per day. Reuters independently reported the 25-year term, the 17-field programme and the 1.5-million-barrel target. (RT International)
Rodriguez presented the deal as a way of rebuilding an oil industry weakened by years of underinvestment, mismanagement and international sanctions.
She insisted that foreign involvement does not amount to surrendering Venezuela's natural resources.
"Something must be made absolutely clear: Venezuela retains ownership and sovereignty over its resources."
According to Rodriguez, Venezuela will instead draw on outside capital, technology and operational expertise to restore production capacity. (RT International)
Trump Describes It Rather Differently
The language coming from Washington is considerably stronger.
President Donald Trump announced that the United States had secured "majority" control of more than 65 billion barrels of Venezuelan proven oil reserves through partnerships involving private companies.
Trump described the agreement as the biggest oil deal in history and claimed it would more than double American oil reserves. But that description requires an important qualification: Venezuelan oil would remain physically located in Venezuela and would not simply become part of the United States' domestic proved reserves. (RT International)
That leaves a potentially important distinction between ownership of the resource, operational control of production, commercial rights and control over where the resulting oil is sold.
The precise legal and financial structure has not yet been publicly detailed. Reuters reported that Trump did not disclose exactly how the United States would exercise its claimed majority control, while sources said a lease-based model had been under consideration. (Reuters)
In other words, Caracas and Washington appear to be describing the same agreement through very different political lenses: Venezuela emphasises continuing sovereignty, while the Trump administration emphasises American control.
A Huge Attempt to Rebuild Venezuelan Production
The economics are potentially substantial.
Venezuela possesses the world's largest proven oil reserves but currently produces only around 1.25 million barrels per day, well below the levels its enormous resource base could theoretically support.
Rodriguez says the 1.5-million-barrel target under the bilateral agreement is only an initial objective. The wider programme is also expected to include development of eight additional greenfield oil blocks. (Reuters)
She estimated the arrangement could ultimately generate approximately US$209 billion in revenue for the Venezuelan state, based on an assumed oil price of US$65 per barrel. Around US$19 from each barrel produced and sold under the arrangement would flow directly to Venezuela, according to her figures. Those are Venezuelan government projections rather than guaranteed returns and will depend heavily on production levels, investment and future oil prices. (Reuters)
US officials have meanwhile presented the agreement as capable of attracting close to US$100 billion in private investment, modernising Venezuela's deteriorated petroleum infrastructure and securing additional crude supplies for American refiners. (Reuters)
Sovereignty Questions Have Not Disappeared
Not everyone in Venezuela accepts the government's interpretation.
RT reports that former Venezuelan Planning Minister Ricardo Hausmann has described the arrangement as unconstitutional, arguing that the interim administration does not possess the authority to surrender long-term control over Venezuelan petroleum assets.
Former vice president Elias Jaua has also accused Washington of effectively taking control of the country's natural resources. (RT International)
Those objections highlight the unresolved question sitting at the centre of the agreement.
If Venezuela legally owns the oil but American companies receive long-term development rights, Washington exercises significant influence over production, and US authorities obtain substantial control over sales or revenues, then the practical meaning of "sovereignty" may depend heavily on the final contracts.
That detail will matter far more than the political language being used by either government.
A Major Shift in Global Energy Politics
The significance extends beyond Venezuela and the United States.
Venezuela is a founding member of OPEC, and RT reports that Caracas has been considering whether to leave the organisation after more than six decades of membership. That report, attributed by RT to Bloomberg sources, has not been confirmed as a final Venezuelan government decision. (RT International)
If Venezuelan production rises substantially under a US-backed development programme, additional heavy crude entering international markets could eventually influence global supply, refinery flows and pricing.
It would also mark a remarkable geopolitical realignment: one of the world's largest petroleum resource bases becoming closely integrated with American capital and energy strategy after decades of confrontation between Washington and Caracas.
Does This Affect New Zealand?
Potentially — although mainly through the international oil market rather than direct access to Venezuelan crude.
New Zealand remains exposed to movements in global petroleum prices because the country imports the refined fuels used throughout the economy. A substantial long-term increase in Venezuelan production could add supply to international markets and, all else being equal, exert downward pressure on crude prices.
But 65 billion barrels of reserves should not be confused with 65 billion barrels suddenly entering the market.
New fields require investment, infrastructure, drilling and sustained production. Venezuela's petroleum sector has also suffered from years of underinvestment and operational problems. The immediate effect on international prices may therefore be limited, while the longer-term consequences could be much larger if the promised investment and production increases actually materialise. (Reuters)
For New Zealand, the important numbers to watch are consequently not the headline 65 billion barrels, but Venezuela's actual daily production, export volumes and the resulting effect on international crude and refined-fuel prices.
The bigger story may be geopolitical. Washington is attempting to secure long-term influence over one of the largest concentrations of petroleum on Earth at a time when energy security has again become central to global power politics.
Whether the agreement ultimately represents a Venezuelan economic recovery financed by American capital, or a transfer of effective control over strategic resources, will become clearer only when the contractual structure and actual flow of revenues are known.
Source: RT, 30 August 2026 — Venezuela’s interim president addresses US oil deal
Independent reporting. Original context. Credited sources.