Venezuela has signed what could be the most consequential oil agreement in the Western Hemisphere in decades. Interim President Delcy Rodríguez confirmed that a sweeping energy deal with the United States will run for 25 years, covering the development of 17 oil fields holding 65 billion barrels of proven reserves — reserves that rank among the largest of any country in the world.

The goal is to raise Venezuela's crude oil production to 1.5 million barrels per day — a figure that would mark a dramatic revival for an industry that spent years deteriorating under sanctions and mismanagement. Reaching that level would restore Venezuela to the ranks of significant OPEC producers, though still well below its historical peak, and would add meaningful supply to a global market in which producer policies have repeatedly shifted in recent years.

Terms of the Agreement

The deal is structured as a joint venture that gives the US a 55% effective output stake through private-sector partners. Among the key private-sector participants is Venezuelan businessman Alejandro Betancourt López, who has emerged as a central figure in the post-Maduro economic landscape.

The projected numbers are substantial. The agreement is expected to attract more than $100 billion in investment and generate over $209 billion in tax revenue for Venezuela over its lifespan.

Former President Donald Trump described the arrangement as "the biggest oil deal in world history" in a social media post.

Background: From Maduro to a New Era

The deal follows the capture and removal of Nicolás Maduro by US forces in January 2026, a development that upended the political order in Caracas and installed Rodríguez as interim president. Maduro had faced drug-trafficking charges at the time of his capture.

Under Maduro, Venezuela's oil output collapsed from its peak of roughly 3.3 million barrels per day in the late 1990s to levels that sometimes fell below 400,000 barrels per day. Years of underinvestment, corruption, the departure of skilled workers, and successive layers of US sanctions turned what was once one of OPEC's most prized producers into a case study in resource mismanagement. Much of Venezuela's crude is heavy and sour, requiring diluent and specialized upgrading capacity — infrastructure that deteriorated alongside production, meaning any revival depends on rebuilding not just wells but the entire processing and export chain.

Rodríguez's government has made revitalizing the oil sector its top economic priority, enacting legislative reforms and pursuing bilateral partnerships designed to attract US capital back into the energy sector. These efforts have included earlier contracts with companies such as General Electric and Hunt Oil aimed at restoring the power grid and oil service infrastructure. Questions that will shape the deal's trajectory include whether the interim government can provide the legal and investment stability needed to sustain decades-long commitments, and how quickly displaced technical expertise and infrastructure can be rebuilt — factors that will determine whether the 1.5 million barrel per day target moves from projection to production.