Venezuela’s interim president says US energy deal will last 25 years
Venezuelan interim President Delcy Rodriguez said on Saturday that an energy agreement with the United States would remain in force for 25 years, target an increase in crude oil production to 1.5 million barrels per day (bpd) and preserve the country’s sovereignty over its natural resources.
Rodriguez described the agreement as a “historic” deal that would help revive Venezuela’s economy and increase government revenue, saying it would also play a 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,” Rodriguez said on state broadcaster VTV.
“That figure relates solely to the bilateral agreement between Venezuela and the United States,” she added.
Rodriguez said the 1.5 million bpd target was only an initial goal, noting that the broader plan included the development of eight greenfield oil blocks as part of an expansion of Venezuela’s energy sector.
U.S. President Donald Trump on Friday announced plans for the United States to take partial control of Venezuela’s vast oil reserves, saying American companies could help revive the country’s struggling energy industry while providing an additional source of crude to lower U.S. fuel prices.
Trump provided few details about the agreement, saying only that the United States had secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through a partnership with private businesses.
Venezuela has the world’s largest proven oil reserves but currently produces about 1.25 million bpd, far below its potential, following years of underinvestment, mismanagement and sanctions.
Rodriguez said the agreement could generate about $209 billion in revenue for the Venezuelan government, based on a benchmark oil price of $65 per barrel, although she acknowledged that crude prices could fluctuate. She added that about $19 from each barrel produced and sold under the arrangement would go directly to Venezuela.
She said Venezuela would retain “ownership of and sovereignty” over its natural resources while using foreign capital, technology and operational expertise to revive an industry that has been severely affected by sanctions.
Earlier on Saturday, dozens of pro-government groups gathered in downtown Caracas to protest against the U.S. presence in Venezuela.
Venezuelan officials are preparing to sign agreements next week granting new oil exploration and production rights to several companies, including U.S. firms. Two sources close to the negotiations said Chevron was among the companies expected to conclude talks to transition its Venezuelan joint ventures into the country’s new energy framework.
Credit: Reuters
