United States President Donald Trump said oil secured under a newly announced agreement with Venezuela will be used to replenish the Strategic Petroleum Reserve (SPR), which has been heavily drawn down in recent years to respond to global supply disruptions and high fuel prices.
Trump said in a post on Truth Social that the "topping out" process would begin shortly, describing the crude as a "Gift from Venezuela to the People of the United States".
The comments followed Trump's announcement of what he described as "THE BIGGEST OIL DEAL IN WORLD HISTORY", under which the United States, through partnerships with private companies, would secure majority control of more than 65 billion barrels of Venezuela's proven oil reserves.
Trump said the agreement would more than double U.S. oil reserves, boost supply and lower fuel prices, while supporting Venezuela's economic recovery.
Venezuelan interim President Delcy Rodriguez said the agreement would remain in force for 25 years and aims to increase crude production to more than 1.5 million barrels per day (bpd), while preserving national sovereignty over natural resources.
Rodriguez described the accord as a "historic" agreement that would revive the economy and increase government revenues.
"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 that the 1.5 million bpd target represented only the initial phase of a broader strategy that includes the development of eight greenfield oil projects.
Trump announced on Friday that the U.S. would take partial control of Venezuela's oil reserves, arguing that American companies could help restore the South American country's struggling energy industry while creating a new source of supply for global markets.
Although Venezuela possesses the world's largest proven oil reserves, production currently stands at around 1.25 million bpd, well below its potential after years of mismanagement, underinvestment and sanctions.
Rodriguez estimated the agreement could generate around US$209 billion in revenue for Venezuela based on an oil price of US$65 per barrel, with roughly US$19 from each barrel flowing directly to the state.
She said Venezuela retained "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".
Dozens of pro-government groups gathered in Caracas on Saturday to protest the expanded U.S. presence in the country.
Venezuelan officials are expected to sign new oil exploration and production agreements next week with several companies, including U.S. firms. Sources familiar with the negotiations said Chevron is among the companies expected to transition existing joint ventures into Venezuela's new energy framework.
