Venezuela's interim president says US energy deal will last 25 years

Venezuelan interim President Delcy Rodriguez proclaimed on Saturday that a recently signed energy agreement with the United States would endure for an extended period of 25 years. The accord aims to elevate crude production to a staggering 1.5 million barrels per day (bpd) and maintain the nation's sovereignty over its natural resources.

Rodriguez hailed the pact as a "historic" deal that would rejuvenate the economy and augment government revenue, stating that it would play a pivotal role in shaping the country's future. "This 25-year bilateral project envisages the development of 17 strategic oilfields with a production target of more than 1.5 million barrels per day," she stated on state broadcaster VTV.

Rodriguez clarified that the 1.5 million bpd target is an initial goal, with the broader plan also encompassing the development of eight greenfield oil blocks as part of an extensive expansion of the country's energy sector.

U.S. President Donald Trump announced on Friday the intention to assume partial control over Venezuela's vast oil reserves, hoping that American companies would aid in revitalizing the South American nation's ailing energy industry while simultaneously offering a new source of crude to help reduce U.S. fuel prices. However, Trump offered minimal details on the agreement, merely mentioning that the U.S. had secured majority control over more than 65 billion barrels of Venezuela's proven oil reserves through a partnership with private businesses.

Venezuela possesses the world's largest proven oil reserves, yet it currently only produces around 1.25 million bpd, considerably lower than its potential output. This reduced production is a result of years of underinvestment, mismanagement, and sanctions. Rodriguez indicated that the agreement could yield approximately $209 billion in revenue for the Venezuelan state, based on a benchmark oil price of $65 per barrel.

She acknowledged that crude prices could fluctuate, but she emphasized that roughly $19 from each barrel produced and sold under the arrangement would directly flow to Venezuela, resulting in a substantial boost to government revenue.

She affirmed that the country retained "ownership of and sovereignty" over its natural resources, even as it leveraged capital, technology, and operational expertise to support the recovery of a crucial industry that has suffered severely due to sanctions. Earlier on Saturday, numerous pro-government groups congregated in downtown Caracas to protest the U.S. presence in Venezuela.

Rodriguez welcomed the agreement following Trump's announcement, asserting that it would stimulate economic growth and enhance government revenue.