US Secures 55% Output Share in Venezuelan Oil Venture

The agreement covers 17 strategic oil fields located primarily in the Orinoco Belt and Lake Maracaibo region. Under the proposed structure, the U.S. will receive equity and the right to purchase crude at production cost, with the Pentagon’s Office of Strategic Capital reportedly providing oversight. Venezuelan interim President Delcy Rodríguez has granted development rights spanning 100 years, projecting that the venture will generate $209 billion in tax revenue while attracting $100 billion in private investment to repair the country’s dilapidated energy infrastructure.

Despite the scale of the announcement, the deal faces significant hurdles. Venezuela’s oil industry has suffered for years from underinvestment, sanctions, and decaying export terminals, requiring billions in repairs before production can increase substantially. Furthermore, the legal framework remains contested; experts like David Goldwyn have noted that no precedent exists for the U.S. government to directly lease and operate foreign oil fields. Previous expropriations by the Venezuelan state, alongside ongoing constitutional challenges to Rodríguez’s authority, leave the long-term security of these assets uncertain. While the administration views this as a path to lowering gasoline prices ahead of midterm elections, industry executives remain cautious, citing the immense logistical difficulty of reviving the nation’s output.