Venezuela says it will retain oil sovereignty under $100 billion US agreement
Venezuela's acting president, Delcy Rodriguez, said the country will retain ownership and sovereignty over its oil resources under a 25-year agreement with the United States involving more than $100 billion in private investment.
The agreement covers the development of 17 strategic fields with 65 billion barrels of proven reserves and aims to increase Venezuelan oil production. Rodriguez said the deal would bring capital, technology and infrastructure to an industry affected by years of sanctions.
"One thing must be absolutely clear: Venezuela retains ownership and sovereignty over its resources while it uses capital, technology and operating capacity to leverage the recovery of a strategic industry hard hit by sanctions," Rodriguez said.
She said the goal was to turn Venezuela's oil reserves into "production, opportunities, wellbeing and future" for the population.
Rodriguez estimated that at a reference price of $65 per barrel, the Venezuelan state could receive around $209.34 billion in revenue, or about $19 for every barrel produced and sold.
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The project also includes eight new blocks in the Orinoco Oil Belt, with minimum royalties of 16% and an income tax rate of 34%.
Rodriguez thanked US President Donald Trump and Secretary of State Marco Rubio for their involvement in the negotiations, saying Venezuela had chosen diplomacy to turn differences with Washington into cooperation and investment.
Trump described the agreement as the largest oil deal in history and said the United States would obtain majority control over the reserves involved. His description contrasts with Caracas's position that Venezuela will retain ownership and sovereignty over its resources.
This story is written and edited by the Global South World team, you can contact us here.
