Venezuela says US energy deal lasts 25 years, targets 1.5M bpd

Rodriguez outlines details of a 25-year energy agreement with the United States. (Photo:/Reuters)

Venezuelan interim President Delcy Rodriguez has said that an energy agreement with the United States will remain in force for 25 years, target an increase in crude output to 1.5 million barrels per day (bpd), and preserve the nation's sovereignty over its natural resources.

Rodriguez hailed the accord in a late-night address as a "historic" deal that would help revive the economy and boost government revenue, saying it would shape 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," Rodriguez said on state broadcaster VTV.

"That figure relates solely to the bilateral agreement between Venezuela and the United States."

Rodriguez added that the 1.5 million bpd target represents an initial goal, noting that the broader plan includes developing eight greenfield oil blocks as part of a wider energy sector expansion.

US involvement

US President Donald Trump on Friday announced plans for the US to take partial control of Venezuela's oil reserves, betting that American firms can revive the battered sector whilst providing crude to lower US domestic fuel costs.

Trump stated that Washington secured majority control of over 65 billion barrels of proven reserves through private business partnerships.

Venezuela holds the world's largest proven oil reserves, but currently produces roughly 1.25 million bpd following years of underinvestment and sanctions.

Rodriguez estimated the agreement could generate around $209 billion for the Venezuelan state, based on a $65 per barrel benchmark price, with approximately $19 per barrel flowing directly to the government.

She stressed that Venezuela retains "ownership of and sovereignty" over its natural resources, "while leveraging capital, technology and operational expertise to support the recovery of a strategic industry that has been severely affected by sanctions."

Venezuelan officials are preparing to sign agreements next week granting exploration and production rights to several firms, with sources confirming Chevron is expected to transition its joint ventures into the new framework.

Source: TRT