Venezuela says 25-year US oil deal could generate US$209 billion while preserving resource sovereignty

CARACAS, 30 AUGUST 2026 —

Venezuela Unveils 25-Year US Oil Deal Worth $209 Billion, Targeting 1.5 Million bpd Output

Rodriguez, speaking on state broadcaster VTV, emphasized that the agreement would revive Venezuela’s energy sector, which has suffered from years of underinvestment, mismanagement, and sanctions. She stated that the deal would ensure Venezuelan ownership of its resources while leveraging foreign capital, technology, and expertise. Revenue projections are based on a benchmark oil price of US$65 per barrel, with US$19 per barrel allocated to the Venezuelan state.

The announcement follows US President Donald Trump’s Friday statement that the US had secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through partnerships with private companies. Trump framed the move as a way to revive Venezuela’s energy industry and provide a new crude supply source to help lower US fuel prices. However, few operational details were disclosed.

Negotiations are advancing, with Venezuelan officials preparing to sign agreements next week granting new oil exploration and production rights to multiple companies, including US firms. Two sources close to the talks confirmed that Chevron is among the companies expected to finalize arrangements to transition its existing Venezuelan joint ventures into the new energy framework.

Venezuela holds the world’s largest proven oil reserves but currently produces only about 1.25 million bpd, far below its potential. The agreement aims to reverse this decline by attracting foreign investment and technical expertise. Meanwhile, pro-government groups staged protests in Caracas on Saturday against perceived US involvement in Venezuela’s energy sector.

Market Impact for Malaysia Malaysia, a key oil and gas player in Southeast Asia, may see indirect effects from the deal, particularly in global crude pricing and supply dynamics. If Venezuela achieves its target output, it could contribute to a modest increase in global supply, potentially influencing Brent crude prices. Malaysian oil companies with international exposure, such as Petronas, may monitor these developments for trading and investment opportunities.

However, the impact on Malaysia’s domestic market is expected to be limited unless the deal leads to broader shifts in regional energy partnerships.

Sector and Company Specifics The agreement prioritizes 17 strategic oil fields, with an initial target of 1.5 million bpd—a significant jump from current production levels. The inclusion of eight greenfield blocks suggests long-term expansion plans. For US companies like Chevron, the deal presents an opportunity to re-enter Venezuela’s energy sector, which has been constrained by sanctions. Chevron’s involvement could signal renewed foreign interest in Venezuela’s upstream projects, though regulatory and geopolitical risks remain.

Outlook The success of the 25-year agreement hinges on several factors, including the lifting of sanctions, stable crude prices, and sustained foreign investment. However, execution risks—such as political instability, operational challenges, and fluctuating oil prices—could hinder progress. For Malaysia, the deal’s broader implications will depend on how it reshapes global oil supply and pricing dynamics in the coming years.

Related: Chevron · Delcy Rodriguez · Caracas