Venezuela-U.S. Oil Deal Will Last 25 Years, Delcy Rodríguez Reveals

Acting Venezuelan President Delcy Rodríguez announced on Saturday, August 29, that the oil agreement with the United States will have a 25-year term and a production target exceeding 1.5 million barrels per day. The disclosure expands on the Friday announcement, when Washington said it will control more than 20% of Venezuela's reserves, according to El Financiero.

The agreement establishes a joint venture between the U.S. government and an unidentified private operator, with rights over unexploited fields for 100 years, according to a U.S. official cited by AP. Washington receives 55% of that company's effective production, through a combination of equity participation and crude purchases at cost price, which would position it as the second-largest corporate holder of proven reserves in the world after Saudi Aramco. Rodríguez stated that Venezuela retains ownership and sovereignty over its resources, and that the plan covers 17 fields with a proven potential of 65,000 million barrels. For U.S. Gulf Coast refineries, the timeframe defines a heavy crude supply framework spanning two decades, while Venezuelan production, which once exceeded 2.5 million barrels per day, requires investment to recover capacity, according to specialists cited by AP.

Rodríguez detailed that the agreement covers the development of eight blocks in the Orinoco Oil Belt, spanning more than 55,000 square kilometers, with minimum royalties of 16% and an income tax rate of 34%. At a reference price of 65 dollars per barrel, she estimated that approximately 19 dollars per barrel produced and sold flows directly to the country. The acting president cited agreements with companies including Chevron, Repsol, Eni, Shell, and BP, and argued that the United States is contributing capital, technology, and operational capacity to accelerate the recovery of a strategic industry severely damaged by sanctions. The text of the agreement has not been published, and neither the private operator nor the source of investment funds has been identified, according to AP.

The next milestone to watch is the publication of the agreement's terms and the identity of the operating company, which neither government has confirmed. Rodríguez said the goal is the recovery of the sector; specialists consulted by AP place the process in the range of years.

This article was produced with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.