US nears deal to secure stake in Venezuelan oil fields, insiders say
President Donald Trump announced a deal on Friday giving the United States a majority stake in Venezuela's oil reserves. The agreement establishes a private company in which the Pentagon holds a 35% ownership stake, while the State Department secured a guarantee to purchase 20% of the production at cost. Trump intends to use the proceeds to replenish the emergency energy supplies of the United States, though energy experts expressed skepticism regarding the plan's impact on domestic gas prices.
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- ✓ The Trump administration announced a deal on Friday for the U.S. to take a majority stake in Venezuela's oil reserves.
- ✓ The Pentagon holds a 35% ownership stake in the newly created private company.
- ✓ The State Department has a guarantee to purchase 20% of the oil output at cost.
What changed
The Trump administration officially announced the deal and detailed specific ownership percentages for the Pentagon and State Department.
Live updates
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Trump administration secures majority stake in Venezuelan oil reserves
President Donald Trump announced a deal on Friday giving the United States a majority stake in Venezuela's oil reserves. The agreement establishes a private company in which the Pentagon holds a 35% ownership stake, while the State Department secured a guarantee to purchase 20% of the production at cost. Trump intends to use the proceeds to replenish the emergency energy supplies of the United States, though energy experts expressed skepticism regarding the plan's impact on domestic gas prices.
Why it matters
Venezuela holds 65 billion barrels of oil reserves. This agreement follows a period of negotiations involving US firms and the Venezuelan government to secure long-term energy access.
What is confirmed
- The Trump administration announced a deal on Friday for the U.S. to take a majority stake in Venezuela's oil reserves.
- The Pentagon holds a 35% ownership stake in the newly created private company.
- The State Department has a guarantee to purchase 20% of the oil output at cost.
Still unconfirmed
- Proceeds from the deal will be used to replenish diminished emergency energy supplies.
- The agreement will not lower gas prices for consumers.
What to watch next
- Release of the formal agreement text
- Disclosure of the funding source for drilling operations
- Timeline for when reserves will begin drilling
confidence 80%Sources used for this update (8)
- economictimes.indiatimes.com — Indian Rupee
- www.aljazeera.com — Latin America News
- apnews.com — What we know about Trump’s deal giving US access to vast oil reserves in Venezuela
- www.tpr.org — The U.S.-Venezuela oil deal won't lower your gas prices. Here's what you need to know
- www.baltimoresun.com — What we know about Trump’s deal giving US access to vast oil reserves in Venezuela
- www.nbcnews.com — Days after Trump announces Venezuela oil deal, White House fills in some of the details
- www.cnn.com — Why Venezuela probably won’t solve America’s emergency oil problem
- www.deseret.com — The latest on the U.S.-Venezuela oil deal
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US nears deal to secure stake in Venezuelan oil fields
The US is close to striking a deal to secure a significant stake in Venezuelan oil fields, with multiple sources indicating that the agreement could provide long-term access to Venezuela's vast oil reserves. The deal, which has been in the works for some time, is expected to involve Chevron and other US firms investing billions in Venezuelan oil fields. The agreement aims to secure US control of a portion of Venezuela's 65 billion barrels of oil reserves.
Why it matters
The US is seeking to secure a stake in Venezuelan oil fields as global oil supplies are strained due to conflicts in Iran and Ukraine. Venezuela, a member of OPEC, has been weighing an exit from the organization. The deal could have significant implications for the global oil market and US-Venezuela relations.
What is confirmed
- The US is close to striking a "massive" deal for Venezuelan oil fields.
- The deal involves more than a dozen producing oil fields with about 90 billion barrels of proven reserves.
- Chevron and other US firms are near a deal to invest billions in Venezuelan oil fields.
- The agreement aims to secure US control of 65 billion barrels of oil reserves.
- Venezuela is weighing an exit from OPEC.
Still unconfirmed
- The US wants big stake in Venezuelan oil and gas.
What to watch next
- Finalization of the deal
- US-Venezuela negotiations on OPEC exit
- Impact on global oil market
confidence 85%Sources used for this update (18)
- Axios — Scoop: U.S. close to striking "massive" deal for Venezuelan oil fields
- Crude Oil Prices Today | OilPrice.com — U.S. In Talks To Take Direct Ownership Of Venezuelan Oil Fields
- Bloomberg.com — US in Talks With Venezuela to Take Major Stake in Oil Fields
- Bloomberg.com — Venezuela Weighs OPEC Exit After Decades as It Deepens US Ties
- WSJ — Trump Administration in Advanced Talks for Stake in Venezuelan Oil Fields
- Reuters — US nears deal to secure long-term access to Venezuela's oil reserves, sources say
- Al Jazeera — US nears deal to secure stake in Venezuelan oil fields, insiders say
- Bloomberg.com — OPEC’s Future Darkens With Venezuela Latest Nation to Mull Exit
- WSJ — Exclusive | Chevron, Other U.S. Firms Near Deal to Invest Billions in Venezuelan Oil Fields
- san.com — US eyes stake in Venezuelan oil as wars in Iran, Ukraine strain supplies: Report
- Bloomberg.com — Chevron Nears Deal to Expand in Venezuela, WSJ Says
- The Washington Post — Trump seeks vast, potentially costly U.S. stake in Venezuelan oil industry
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