US and Venezuela Close to Historic Oil Agreement
With the consensus reached between the two countries, the control of massive reserves and the development of strategic fields are targeted.
As a result of ongoing negotiations to acquire ownership stakes in Venezuela's oil resources, the US administration has reached a historic agreement. US President Donald Trump announced that control of the country's proven oil reserves has been secured.
Trump's Statement on Reserves
In a statement shared via his social media account, US President Donald Trump stated that control of the majority of Venezuela's proven oil reserves, exceeding 65 billion barrels, has been obtained through a partnership established with the private sector.
Approval of the Interim Government
Venezuelan Interim President Delcy Rodriguez welcomed the agreement, stating that it would revive the economy and increase tax revenues. Following this development, economic balances in the country are expected to shift.
Investment and Concession Details
According to Rodriguez's statement, the agreement envisages the development of 17 strategic fields, the injection of over 100 billion dollars in investments, and bringing a total of 209 billion dollars in tax revenue to the country.
It was also stated that the initiative has been granted a 100-year concession to operate in the oil fields.
Legal Infrastructure Debates
Experts are debating whether the agreement will lower gasoline prices in the short term and its legal infrastructure under the Venezuelan constitution and the new hydrocarbons law.
It is noted that developing the infrastructure could take years and that there is no established precedent for the US government to enter into leasing agreements to operate oil fields.