Washington, Sep 2026 : The United States has secured a 35 per cent equity stake in a Venezuelan oil venture without committing federal funds, gaining access to some of the world’s largest proven crude reserves under an agreement aimed at strengthening Washington’s energy position and reducing Chinese and Russian influence in the Western Hemisphere, a senior US official said.
The agreement covers oil fields holding around 65 billion barrels of proven reserves. Under the arrangement, the United States will have access to 20 per cent of the oil produced at the cost of production, while also receiving a right of first refusal over the remaining 80 per cent. The deal represents a significant expansion of Washington’s potential role in Venezuela’s energy sector at a time when the US administration is seeking to reshape the country’s economic and geopolitical orientation.
“The United States is not investing dollars. It’s investing, it’s backing behind this deal in exchange for 35 per cent of the equity,” the senior official told reporters.
The US equity position has been structured through the Office of Strategic Capital within the Department of War. A second US official said the transaction is consistent with the statutory authority granted to the office when it was established during the Biden administration.
The Trump administration views the agreement as more than an energy investment, describing it as part of a wider geopolitical strategy. Washington believes securing a greater role in Venezuela’s oil industry could help stabilise energy supplies while encouraging Caracas to move away from its longstanding economic and political relationships with Moscow and Beijing.
The senior official described the arrangement as a “geopolitical opportunity” to secure oil fields that had previously been largely influenced by Chinese and Russian companies and bring them into closer alignment with US strategic interests.
Under the agreement, Washington will receive 20 per cent of production at cost. The oil could eventually be used by a future US administration to replenish strategic petroleum reserves or potentially generate revenue for the federal government.
Although the United States does not expect to routinely exercise its right of first refusal over the remaining 80 per cent of production, officials said the provision could provide an important safeguard during a major energy disruption. The right was described as a potential “long-term insurance policy” that could be activated in the event of an energy emergency.
The agreement is also designed to encourage private investment into Venezuela’s severely weakened oil industry. US officials estimate that the arrangement could attract at least $100 billion in private capital to restore production capacity, upgrade infrastructure and revive an industry damaged by years of underinvestment and operational deterioration.
Venezuela would retain significant fiscal benefits from the venture. According to the senior official, the agreement provides for a royalty ceiling of up to 30 per cent and a hydrocarbon tax of as much as 15 per cent.
US Energy Secretary Wright is expected to lead a delegation to Venezuela, where Chevron is expected to announce an expansion of its existing operations. Officials said several smaller and medium-sized commercial agreements had also been announced in recent days, with additional deals likely to follow.
Washington is presenting the revival of Venezuela’s oil industry alongside a proposed political transition towards democracy. A third round of political discussions is expected in September, although officials declined to provide a specific timetable for elections.
The administration has said it wants elections to take place as soon as possible but stressed that the objective is to establish conditions for a durable democratic system. “Our interest here is not just having an election. It’s having an election that leads to an enduring republic,” the official said.
US officials argue that restoring Venezuela’s oil sector before elections could strengthen any future democratic government by providing it with a functioning source of state revenue. Rebuilding the industry, they say, would allow a future administration to inherit an economy capable of generating income rather than one facing continued economic collapse.
Venezuela holds the world’s largest proven crude oil reserves, but production has declined sharply from levels recorded before the presidency of Hugo Chavez. Years of underinvestment, corruption, sanctions and operational problems have severely weakened the country's petroleum industry.
State-owned Petroleos de Venezuela has historically been the backbone of government finances. During the Chavez and Nicolas Maduro governments, Venezuela developed extensive energy and financial relationships with China and Russia. Beijing provided oil-backed loans, while Russian companies participated in energy projects and Moscow offered sustained political and economic support to Caracas.
The new US-backed arrangement marks a potentially significant shift in the balance of influence surrounding Venezuela’s oil industry, while linking energy investment with Washington’s broader geopolitical and political objectives in the region.
(Disclaimer :The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)
