Venezuela is projecting more than $200 billion in potential revenue from a sweeping new energy agreement with the United States, as the two countries move to dramatically expand oil production under a long-term deal.
Interim Venezuelan President Delcy Rodríguez said the agreement is designed to revive the country's struggling oil industry, with an initial production target of 1.5 million barrels per day from 17 strategic oilfields. The agreement is expected to remain in place for 25 years.
The announcement follows President Donald Trump's declaration that the United States had reached what he described as a historic oil agreement with Venezuela. Trump said the deal gives the U.S. majority control of more than 65 billion barrels of Venezuela's proven oil reserves.
New Venezuela Oil Deal Targets Major Production Growth
Venezuela holds the world's largest proven oil reserves, but years of economic turmoil, sanctions and underinvestment have left its petroleum infrastructure in poor condition.
The new agreement seeks to reverse that decline by bringing additional investment, technology and private-sector participation into the country's oil industry.
Rodríguez said the initial plan covers 17 strategic fields and includes the development of eight additional greenfield blocks. The production goal of 1.5 million barrels per day would represent a significant increase from Venezuela's current output.
Officials say the partnership is intended to restore Venezuela's position as a major global oil producer while generating additional government revenue.
Venezuela Projects More Than $200 Billion in Revenue
The most striking figure attached to the agreement is the projected revenue for Venezuela.
Rodríguez said the government could receive roughly $19 for every barrel of oil produced and sold to the United States. At the projected production levels and an assumed benchmark oil price of $65 per barrel, the arrangement could generate approximately $209 billion in revenue for Venezuela, according to Reuters.
The figure is a projection rather than a guaranteed return. Actual revenue would depend on production levels, crude prices, operating costs and how quickly damaged oil infrastructure can be restored.
The Venezuelan government has presented the potential income as an important source of funding for economic recovery.
Trump Calls Agreement a Historic Energy Deal
Trump has promoted the agreement as a major strategic victory for the United States.
In announcing the deal, Trump said Washington had secured majority control of more than 65 billion barrels of Venezuela's proven reserves and described the arrangement as the biggest oil deal in world history.
The agreement could also strengthen U.S. access to crude supplies closer to home while creating opportunities for American energy companies to participate in Venezuela's recovery.
Companies including Chevron are expected to play a role as the new framework takes shape, although major questions remain about investment requirements and the pace of production growth.
Venezuela Insists It Will Keep Oil Sovereignty
Despite the expanded U.S. role, Rodríguez has insisted that Venezuela will retain sovereignty over its natural resources.
She said the agreement provides for cooperation and investment while preserving Venezuelan ownership of its resources. Under the arrangement, U.S. companies and other investors would participate through joint ventures and production projects.
The deal has nevertheless triggered controversy inside Venezuela, where opponents have raised concerns about increased American influence over the country's most valuable natural resource. Protests were reported in Caracas following the announcement.
Oil Industry Faces Major Challenges Ahead
Turning the agreement's ambitious targets into actual production will be a major challenge.
Venezuela's oil industry has suffered from years of underinvestment and deteriorating infrastructure. Analysts have warned that substantial capital and technical expertise will be required before production can rise significantly.
The 1.5-million-barrel-per-day target therefore represents a long-term objective rather than an immediate increase.
If the investment program succeeds, however, the agreement could reshape Venezuela's economy and significantly increase U.S. involvement in one of the world's largest oil-producing regions.
For now, the projected $200 billion-plus revenue figure remains dependent on the successful expansion of production, stable oil prices and the implementation of the 25-year energy framework.
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