Venezuela Details 25-Year US Energy Deal Targeting 1.5 Million BPD Output

Venezuela’s interim government has provided details on a major energy agreement with the United States, stating the deal will last for 25 years and aims to boost the nation's crude oil output to over 1.5 million barrels per day (bpd). The announcement by interim President Delcy Rodriguez on Saturday follows a U.S. plan to help revive the South American country's struggling oil industry.

Terms of the Agreement

In a televised address, Rodriguez described the accord as a "historic" bilateral project that could generate approximately $209 billion in revenue for the Venezuelan state, based on a benchmark oil price of $65 per barrel. She stated that the initial production target of 1.5 million bpd would come from the development of 17 strategic oilfields.

Rodriguez added that the arrangement would provide a direct flow of about $19 from each barrel to Venezuela, significantly increasing government revenue. The broader plan also includes the development of eight new greenfield oil blocks. Despite the U.S. involvement, she asserted that Venezuela would retain “ownership of and sovereignty” over its natural resources.

U.S. Involvement and Market Context

The details follow President Donald Trump's announcement on Friday that the U.S. would take partial control of Venezuela's oil reserves, aiming to lower domestic fuel prices. While Trump did not provide extensive details, he said the U.S. had secured majority control of over 65 billion barrels of Venezuela's proven reserves through a private business partnership.

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Venezuela holds the world's largest proven oil reserves but has seen its production collapse to around 1.25 million bpd after years of underinvestment, mismanagement, and international sanctions. U.S. energy major Chevron is among the companies expected to finalize new agreements under the framework, according to sources close to the negotiations.

Economic and Political Implications

Rodriguez hailed the deal as a catalyst for reviving Venezuela's battered economy. However, the announcement has been met with some domestic opposition, as pro-government groups gathered in Caracas on Saturday to protest the increased U.S. presence in the country's strategic energy sector.

For global energy markets, a successful revival of Venezuelan production could introduce a significant new source of crude supply. The deal leverages American capital and technology to restore a key industry that has been severely hampered, potentially altering global oil trade dynamics if production targets are met.