Trump announces 'historic' deal giving the US control of 65 billion barrels of Venezuelan oil reserves through a 100-year joint venture concession
President Donald Trump has announced what he described as a 'historic' deal under which the United States will control more than 65 billion barrels of Venezuela's proven oil reserves. Trump posted on social media that the transaction 'more than doubles American oil reserves, greatly increases our oil supply, and will substantially lower gas prices for all Americans'. Secretary of State Marco Rubio and Defence Secretary Pete Hegseth are said to have concluded the agreement with Venezuela's leadership 'through a partnership with private business'. Venezuela's interim President Delcy Rodriguez confirmed the deal, describing it as one that would support her nation's economic revival. Rodriguez stated that the agreement covers the development of 17 strategic oil fields with a proven potential of 65 billion barrels, involves an investment of more than $100 billion, and projects more than $209 billion in taxes for the Venezuelan state. She granted the venture a 100-year concession to operate in the fields. A US official told CBS News that the US government will retain 55% control of a joint venture with an experienced private operator in Venezuela. Trump claimed the agreement was reached 'at no cost to the American Taxpayer'. The official text of the agreement has not been released, and significant questions remain about the legal and constitutional framework governing direct US control over sovereign Venezuelan national resources. The deal follows the arrest of former Venezuelan President Nicolas Maduro by US special forces in January 2026.
Why this matters
The deal, if implemented, would represent an extraordinary exercise of US government control over sovereign natural resources of another country, wider in reported scope than the Coalition Provisional Authority's management of Iraqi oil revenues after 2003. Venezuela holds the world's largest proven oil reserves, estimated at around 303 billion barrels, though production collapsed from its late-1990s peak. The geopolitical stakes are significant: the arrangement could reshape global oil supply dynamics, affect OPEC+ pricing strategy, and set a contested precedent for how resource-rich countries interact with foreign powers under conditions of political transition. The absence of a published treaty text and open questions about Venezuela's constitutional process for approving such a concession introduce material legal uncertainty.
On the Ground
For commercial lawyers, a deal of this complexity generates work across international energy law, project finance (structuring the joint venture and financing the $100 billion investment programme), international public law (sovereignty and treaty frameworks), and sanctions (given Venezuela's history under US and EU sanctions regimes). Firms with strong energy and infrastructure, and international arbitration capabilities will be best positioned to advise private operators, investors, and financial institutions considering participation. A trainee would assist with regulatory filing coordination, treaty analysis notes, sanctions screening memos, and choice-of-law summaries for cross-border agreements.
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“What are the main legal risks for a private energy company considering participation in the US-Venezuela oil joint venture, and how would you advise on structuring their involvement?”
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