The United States has reached a major oil agreement with Venezuela that gives Washington a 55% operational stake in a new public-private venture spanning 17 Venezuelan oil fields and covering more than 65 billion barrels of proven reserves. President Donald Trump announced the deal on Aug. 28, with Reuters reporting that the structure does not transfer ownership of the crude itself but gives the U.S. rights to purchase some production at cost.
The project is expected to operate under a 100-year concession and could attract nearly $100 billion in private investment. However, analysts caution that the agreement is unlikely to cause an immediate supply surge. Venezuela holds roughly 300 billion barrels of proven oil reserves — the largest national total in the world — but current production is only around 1.25 million barrels per day after years of underinvestment, sanctions, and infrastructure decline. Much of the output is extra-heavy crude that needs specialized facilities and significant capital spending.
Chevron is already moving to expand its Venezuelan footprint. The company is close to finalizing deals that would add two new heavy-oil fields to its existing three joint ventures with state-run PDVSA, with an announcement expected Wednesday in Caracas. The agreements would migrate Chevron’s joint ventures into Venezuela’s updated energy framework and allow its Petropiar heavy crude project to expand into the Ayacucho 8 block. Energy Secretary Chris Wright is expected to travel to Caracas for the signing, and Halliburton is in active talks to bring oilfield services and equipment to Venezuelan producers.
Chevron shares rose about 1.05% on the news. ExxonMobil and ConocoPhillips remain on the sidelines for now, still seeking restitution after their Venezuelan assets were nationalized in 2007. Hunt Oil became the first U.S. company to sign a deal to pump Venezuelan oil earlier this month.
For U.S. energy security, the deal matters before new barrels arrive. The Strategic Petroleum Reserve has declined to about 289.7 million barrels, leaving Washington with less flexibility during supply disruptions. Legal uncertainty remains a major risk, with questions over whether the structure fits Venezuela’s constitution and hydrocarbons rules. Turning the reserves into meaningful production will require years of investment, infrastructure work, and political stability.
