Venezuela-US Energy Deal Set to Last 25 Years, Rodriguez Says

Venezuela-US Energy Deal : Venezuela’s interim President Delcy Rodriguez stated that the Venezuela-US energy contract will last 25 years and intends to increase the country’s crude oil production to more than 1.5 million barrels per day. She claimed that the accord will also allow Venezuela to retain ownership and management of its natural resources.

Rodriguez praised the pact as a historic endeavor that might help rehabilitate Venezuela’s faltering economy and enhance government revenue. She made the remarks at a late-night lecture on Saturday.

Venezuela-US Energy Deal Targets Higher Oil Production

The deal calls for the development of 17 strategic oilfields, with a production target of more than 1.5 million barrels per day. Rodriguez clarified that the 1.5 million bpd figure solely refers to the bilateral agreement between Venezuela and the United States.

She stated that the production target is an initial goal rather than the cap of the whole energy plan. The larger project also includes eight greenfield oil blocks, which could increase Venezuela’s energy production even further.

Venezuela now produces approximately 1.25 million barrels per day, despite having the world’s largest proven oil reserves. Years of underinvestment, poor management, and US sanctions have resulted in the country’s oil industry producing far below its full potential.

US Plans Greater Role in Venezuela’s Oil Industry

U.S. President Donald Trump announced on Friday that the United States would take partial control of Venezuela’s oil reserves through partnerships with private companies. He said American firms could help restore the country’s damaged energy industry and provide additional crude supplies to the U.S.

Trump provided little specifics about the arrangement. He stated that the US has gained majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through a partnership with private companies.

Rodriguez stated that the arrangement may provide approximately $209 billion in revenue for Venezuela, based on a benchmark oil price of $65 per barrel. She pointed them that oil prices can fluctuate, thus the ultimate sum may differ.

According to Rodriguez, around $19 from each barrel produced and sold under the agreement would be sent directly to Venezuela. She stated this would be a significant source of additional government cash.

Venezuela Says It Will Keep Control of Natural Resources

Rodriguez insisted that Venezuela would retain ownership and sovereignty over its natural resources. At the same time, the country would use foreign capital, technology and operational expertise to help restore its oil industry.

The announcement has also sparked internal resistance in Venezuela. Earlier on Saturday, dozens of pro-government groups gathered in central Caracas to demonstrate against the US presence in the country.

Despite the protests, Venezuelan officials are proceeding with plans for new oil agreements. Officials are set to sign agreements next week that will provide many corporations, including U.S. enterprises, new rights to explore and extract oil.

According to two persons familiar with the negotiations, Chevron is one of the corporations likely to finalize talks. The business is anticipated to integrate its Venezuelan joint ventures under the new energy framework.