US signs deal to control 20% of Venezuela’s oil reserves

A signing ceremony held on Thursday in Caracas marked the formalization of a new agreement that will give United States‑based entities operational control over roughly one‑fifth of Venezuela’s proven oil reserves. The pact, negotiated between the Venezuelan Ministry of Petroleum and a consortium of U.S. energy firms, was witnessed by senior officials from both governments and is slated to commence operations in early 2027. Under the terms of the deal, the U.S. partners will assume responsibility for exploration, extraction, and export logistics for the designated acreage, while the Venezuelan state will retain ownership of the underlying resources and receive a negotiated share of revenues.

The arrangement comes amid a broader effort by Caracas to attract foreign investment despite longstanding U.S. sanctions and a prolonged economic crisis that has curtailed production at many of the country’s fields. Analysts note that the agreement could boost Venezuela’s output capacity and generate much‑needed foreign currency, while also expanding U.S. access to a portion of the world’s largest oil reserves. Both parties have emphasized that the deal complies with existing international sanctions frameworks and is intended to stabilize the regional energy market. The next steps involve regulatory approvals and the establishment of joint operational oversight mechanisms, with the first production targets expected later next year.