[Reuters] - Venezuela’s interim President Delcy Rodriguez says a new 25-year energy agreement with the United States is aimed at significantly increasing the country’s oil production while maintaining Venezuelan ownership and sovereignty over its vast natural resources.
Rodriguez said the agreement covers the development of 17 strategic oilfields, with an initial production target of more than 1.5 million barrels per day (bpd). She said the target applies specifically to the bilateral Venezuela-US arrangement, while a broader expansion plan also includes eight additional greenfield oil blocks.
The announcement comes as the United States moves to secure a greater role in Venezuela’s oil industry, which has struggled for years with underinvestment, mismanagement and the impact of US sanctions.
US President Donald Trump announced Friday that the United States would take partial control of Venezuela’s oil reserves through partnerships with private companies. He said the arrangement gives the US majority control of more than 65 billion barrels of Venezuela’s proven reserves.
Venezuela holds the world’s largest proven oil reserves, but current production of about 1.25 million bpd remains well below the country’s potential.
Rodriguez said the new arrangement could generate approximately US$209 billion in revenue for the Venezuelan state, based on an assumed oil price of US$65 per barrel. She said about US$19 from each barrel produced and sold under the agreement would go directly to the Venezuelan state.
She maintained that Venezuela would retain ownership of its natural resources while using foreign capital, technology and expertise to rebuild its oil industry.
The development is particularly significant for the Caribbean and northern South America, where Venezuela remains a major energy player and where Guyana has emerged as one of the world’s fastest-growing oil producers.
For Guyana, the Venezuelan push to rapidly restore and expand oil production comes as the country continues to scale up output from its offshore Stabroek Block and attract additional investment into its petroleum sector.
The two countries are also geographically linked through a longstanding territorial dispute over the Essequibo region, making major developments in Venezuela’s oil industry closely watched in Georgetown.
A rapid increase in Venezuelan production could also add more crude to global markets and potentially affect regional energy dynamics, although the scale and timing of any production increase will depend on investment, infrastructure, technology, sanctions and the ability of operators to restore ageing oilfields.
Venezuelan officials are expected to sign agreements next week granting new oil exploration and production rights to several companies, including US firms.
Two sources familiar with the negotiations told Reuters that Chevron is among the companies expected to conclude talks to transition its Venezuelan joint ventures into the new energy framework.
Earlier Saturday, dozens of pro-government groups gathered in downtown Caracas to protest the US presence in Venezuela.
Rodriguez, however, described the energy agreement as historic, saying it could help revive Venezuela’s economy, increase state revenues and shape the country’s economic future.
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