(ABC News)- President Donald Trump announced Friday that the U.S. and Venezuela have reached a “historic” oil deal that he said would give the U.S. a majority control of billions of barrels of oil reserves in the Caribbean country and lower gas prices for Americans.
In a social media post, Trump called it “THE BIGGEST OIL DEAL IN WORLD HISTORY” and said it would provide majority U.S. control of more than 65 billion barrels of proven oil reserves in Venezuela.
The president claimed that the deal will serve to “substantially lower” gas prices for Americans “long into the future.”
The announcement comes as oil and gas prices continue to surge amid the Iran war, which reached the six-month mark on Friday.
“At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer,” Trump said in the post.
A U.S. official with knowledge of the deal told ABC News that the U.S. will have a 55% share in a joint venture with a private Venezuelan company, which will be split between equity ownership and production.
This creates the “second-largest private oil company by reserves in the world,” the official added.
The interim Venezuelan president granted the private company a 100-year lease for oil fields totaling 65 billion barrels of proven reserves, the official said.
In a statement in English posted on social media, Rodriguez hailed the agreement with the U.S. and said it would “have a significant impact on our nation’s revival.”
The U.S. official said the supply of at-cost oil produced from this company will help fill the U.S. Strategic Petroleum Reserve and also benefit the U.S. military.
The deal was negotiated by the Defense Department and State Department, according to the official.
Venezuela has been beset by economic crises for years and suffered two powerful back-to-back earthquakes in June that left more than 6,000 people dead.
Rodriguez thanked Trump and Secretary of State Marco Rubio and said the agreement represents a “historic milestone” in relations between the two countries.
“The agreement will allow for a significant increase in oil production with the participation of private operators,” Rodriguez said in the statement, saying the deal calls for the development of 17 strategic fields, with a proven potential of 65 billion barrels of oil, and an investment of more than $100 billion, and more than $209 billion in tax revenue.
“Venezuela is thus ushering in a new era of recovery, growth, production, security, and prosperity for our people,” she said in the post.
Venezuela is recognized as holding the largest proven oil reserves in the world.
Chevron, the only U.S. oil company currently operating in Venezuela, declined to comment on the president’s post.
Trump also said the deal would “greatly strengthen” the relationship between the U.S. and Venezuela.
In January, the U.S. carried out a military operation in Venezuela to capture then-President Nicolas Maduro and his wife and bring them to the U.S. to face charges including narco-terrorism and drug trafficking.
Maduro and his wife, who have pleaded not guilty, are set to go on trial in New York City, in 2027.
In a social media post, Rubio called the deal a “huge win” for both the U.S. and Venezuela.
“It demonstrates how President Trump’s bold foreign policy is driving America First wins: securing stable reserves and low-cost oil in our Hemisphere and lowering gas prices here at home,” Rubio said in the post. “For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela’s economy.”
