The Venezuelan government has announced that it has reached a strategic agreement with the United States securing majority control over roughly 65 billion barrels of oil from Venezuela’s reserves (Venezuelan government statement, 29/08/2026). The agreement is expected to enable a significant increase in oil production, with private operators participating in the development. It provides for the development of 17 strategic fields, with a proven potential of 65 billion barrels of oil, more than USD100bn in investment and over USD209bn in tax revenues for Venezuela, according to the press release.
In addition, Venezuelan interim President Delcy Rodriguez stated that the agreement with the US would remain in effect for 25 years, target an increase in crude oil production to 1.5 mb/d and maintain the country’s sovereignty over its natural resources. The Venezuelan president added that the 1.5 mb/d target represented only an initial objective, while the broader plan also included the development of eight greenfield oil blocks as part of a wider expansion of the country’s energy sector.
US President Donald Trump stated that oil covered by the agreement with Venezuela will be used to replenish the Strategic Petroleum Reserve, which has been significantly depleted in recent years in response to global supply disruptions and high fuel prices. The reserve held approximately 290 mbl as of August 21, close to a 44-year low, after the United States reduced its stockpile under both the Biden and Trump administrations in response to global supply disruptions, including Russia’s invasion of Ukraine and the conflict with Iran (Reuters, 30/08/2026).
Venezuela has substantial hydrocarbon reserves. According to our data, the country’s proven oil reserves, including non-conventional resources, reached 47 Gt (~345 billion barrels) in 2016 and have been stable since, making them the largest in the world. Crude oil production dropped by 78% between 2013 and 2020 and has increased by 11%/year since, reaching 50 Mt in 2025 (Enerdata Global Energy Research).