U.S. President Donald Trump announced that an agreement had been finalized with Venezuela that he said would give the United States majority control over more than 65 billion barrels of proven oil reserves.
Trump said the transaction would be carried out through a private-sector partnership and would not impose a cost on U.S. taxpayers. He described the agreement as the largest oil deal in the energy sector.
Deal covers 17 strategic fields
Venezuela's interim leader, Delcy Rodriguez, announced that the agreement includes the development of 17 strategic oil fields. Rodriguez said the fields contain proven oil potential of 65 billion barrels.
Rodriguez said the initiative would bring a significant flow of capital for the recovery and reconstruction of strategic infrastructure in Venezuela's hydrocarbon sector. She said the development was a direct result of the strengthening of relations between Washington and Caracas.
Investment and tax revenue expected
Rodriguez announced that the agreement is expected to bring more than $100 billion in investment to Venezuela and generate more than $209 billion in tax revenue for the country.
Trump said the agreement would increase the United States' existing oil reserves by more than twofold and significantly reduce fuel prices for Americans in the long term. Trump said the initiative would increase prosperity in Venezuela while contributing to the region's energy security and strengthening balance in international markets.
New step in Washington-Caracas relations
Trump said the agreement would further strengthen the rapidly developing relations between Washington and Caracas. U.S. Secretary of State Marco Rubio also described the agreement as a major gain for both countries and said it would bring approximately $100 billion in private investment to Venezuela.
U.S. Energy Secretary Chris Wright is expected to travel to Venezuela next week.
