Comprehensive 25-Year Oil Agreement Signed Between Venezuela and US

A historic energy agreement valid for 25 years and aiming to boost daily oil production above 1.5 million barrels has been signed between Venezuela and the US.

Duration and Goals of the Agreement

Making statements to the state television VTV, Rodriguez stated that the historic oil agreement reached with the US will be valid for 25 years and aims to increase daily oil production to over 1.5 million barrels.

International Energy Companies

Stating that their goal is to go even further with the signing of other important agreements encompassing giant companies such as Chevron, Repsol, Eni, Shell, and BP, officials aim to become a full-fledged energy power.

Economic Returns and Expected Revenue

In concrete terms, this situation means that approximately 19 dollars for every barrel produced and sold will directly enter the country. Calculated over a price of 65 dollars per barrel, it is stated that the country could generate 209 billion 335 million dollars in revenue from the agreement.

Orinoco Oil Belt Project

It was noted that the project covers developments in 8 crude fields within the Orinoco Oil Belt—covering an area of over 55 thousand square kilometers in the east and east-central parts of the country—and envisions at least a 16 percent royalty right and a 34 percent income tax rate.

Thanks and Emphasis on Sovereignty

Thanking US President Donald Trump and US Secretary of State Marco Rubio for their efforts in securing the agreement, Rodriguez emphasized that it must be known absolutely clearly that Venezuela preserves its ownership and sovereignty over its resources.

Capital and Technology Support

It was also added that the US will provide capital, technology, and operational capacity to accelerate the recovery of the strategic oil sector, which has been hit hard by sanctions.