Venezuela‑US oil pact: analysts puzzled, Venezuelans outraged

Sun Sep 06 2026 03:56:29 GMT+0000 (Coordinated Universal Time)

A 100‑year US contract on 65 billion barrels surprises experts and fuels anger in Venezuela, raising questions of sovereignty and economic benefit.

The latest oil agreement between the United States and Venezuela grants a US‑led company control over 65 billion barrels of crude, a fifth of the country’s proven reserves, under a 100‑year lease. Trump’s administration justified the deal as a strategic shift away from Middle‑East volatility, citing historic colonial principles. Critics argue the contract is one‑sided, threatens national patrimony, and raises doubts about Venezuela’s capacity to modernise its cracked oil infrastructure. Opposition leaders and Venezuelan socialists warn of renewed colonialism, while supporters claim economic stimulus and stability.

Venezuela–US oil pact: analysts puzzled, Venezuelans outraged

From the night elite US troops stormed the Nicolás Maduro compound in Caracas to force a leadership change, President Donald Trump has insisted that control of Venezuela’s oil would be central to his agenda. He promised to “run” the country and direct oil sales for the foreseeable future.

The signing of the 100‑year concession in Caracas now marks a payoff: a US‑led consortium gains long‑term rights over 17 oilfields amounting to 65 billion barrels of crude, roughly 20 percent of Venezuela’s proven reserves.

Trump hailed it the “biggest oil deal in world history”, while Vice President Delcy Rodríguez called it “historic” and an investment of $100 bn, with more than $200 bn expected in tax revenue. Critics slammed the pact as a “terrible deal”, arguing Venezuela has stripped 20 percent of its patrimony for little gain.

The White House co‑operates with the private operator North American Blue Energy Partners (Nabep), the country’s second‑largest oil producer after Chevron. The arrangement gives the US government veto power over board appointments and requires a majority of Nabep board members to be US citizens.

Proponents say the rule will diversify global energy markets away from Middle‑East chokepoints and revive Venezuela’s decimated output, which experts cite could need eight years of $100 bn investment to return to 30‑year‑old levels. Critics see a ten‑year horizon rather than two or three, warning mismanagement could repeat past blunders.

Opposition leader María Corina Machado has publicly accepted the deal’s implications, yet many Venezuelans feel the pact deepens ties with what they view as an oppressive regime. Socialists and former PDVSA officials argue the agreement opens the door to a new period of US colonialism.