Venezuela-US Energy Deal to Last 25 Years, Aims to Revive Oil Industry

Venezuela’s interim President Delcy Rodríguez has said a new energy agreement with the United States will remain in effect for 25 years, describing the arrangement as a major step towards rebuilding the country’s struggling oil industry and increasing government revenues.

The bilateral project focuses initially on the development of 17 strategic oilfields, with a target of raising Venezuelan crude production to more than 1.5 million barrels per day. Rodríguez said the agreement is designed to attract investment and modern technology needed to restore production from fields that have suffered from years of underinvestment and declining infrastructure.

The deal is expected to generate significant revenue for Venezuela. Based on an oil price benchmark of $65 a barrel, the government estimates that the arrangement could produce about $209 billion in revenue. Rodríguez said approximately $19 from every barrel would go directly to the Venezuelan government, while stressing that the country would retain sovereignty over its natural resources.

The agreement comes as Venezuela seeks to reverse a prolonged decline in its oil sector. Despite possessing the world’s largest proven crude reserves, the country has struggled to maintain production because of inadequate investment, deteriorating infrastructure, management problems and years of US sanctions.

US President Donald Trump has described the agreement as a major oil arrangement and said American companies would obtain significant access to Venezuela’s vast reserves. The deal involves more than 65 billion barrels of proven reserves across the 17 fields covered by the broader plan.

Venezuela also plans to expand the programme beyond the initial fields, with eight additional greenfield oil blocks identified for future development. The government hopes the expanded investment will create new production capacity and strengthen the country’s position in global energy markets.

However, questions remain over the agreement’s legal structure, implementation and the exact role of participating companies. Analysts have also cautioned that rebuilding Venezuela’s damaged oil infrastructure will require substantial investment and time, meaning the economic benefits may not materialise immediately.

The agreement marks a significant shift in Venezuela’s energy relationship with Washington. For Caracas, the long-term partnership offers an opportunity to attract foreign capital and restore oil production, while the United States gains greater access to one of the world’s largest petroleum reserves.