Trump announces US-Venezuela oil deal, calls it ‘biggest oil deal in world history’

US President Donald Trump on Friday announced an agreement with Venezuela covering more than 65 billion barrels of oil reserves, calling it the “biggest oil deal in world history”.

Trump said the agreement was worked out by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth with Venezuela's interim President Delcy Rodriguez.

“The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!” Trump said in a post on social media.

The announcement comes as the US looks to expand its role in Venezuela's oil industry, which has struggled for years with falling production, ageing infrastructure and a lack of investment.

The agreement is expected to involve US companies taking a majority stake in a new partnership covering Venezuelan oil fields with more than 65 billion barrels of proven reserves. The US government is not taking ownership of Venezuela's entire oil stockpile, according to reports on the arrangement.

The plan is expected to attract large amounts of private investment into Venezuela's oil industry. Around $100 billion in investment has been discussed, while the initial proposal covers 17 oil fields and gives US interests a 55 per cent operational share, according to reports.

The companies that will take part in the arrangement and the final terms of the deal have not yet been fully disclosed.

Venezuela has the world's largest proven oil reserves, but its output has dropped sharply over the past decade. Years of economic turmoil and US sanctions have left state-run oil company PDVSA struggling to maintain production and infrastructure.

The Venezuelan government has been seeking foreign investment to bring its oil fields and related infrastructure back up to capacity. The new agreement could bring US companies back into a market from which they have largely been absent.

Trump has also linked the deal to his push for lower energy prices in the US. He has argued that increasing oil supplies will help bring down the cost of fuel for American consumers.

For Venezuela, the agreement could provide much-needed investment and revenue at a time when the government is trying to rebuild the country's economy and oil industry.

The announcement follows years of tense relations between Washington and Caracas, including extensive US sanctions on Venezuela's oil sector.

Trump did not give details on when the agreement would come into force or when the investment would begin. The companies involved, the fields covered and the financial terms of the arrangement are also yet to be officially detailed.