Venezuela's President Says US Energy Deal Will Last 25 Years

Venezuelan interim President Delcy Rodriguez said on Saturday that an energy agreement with the U.S. would remain in force for 25 years, target an increase in crude output to 1.5 million barrels per day (bpd) and preserve the country's sovereignty over its natural resources.

Rodriguez ‌hailed the accord in a late-night address as a "historic" deal that would help revive ​the economy and boost government revenue, saying it would help shape 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."

Rodriguez added that the agreement's target of 1.5 million bpd was only ⁠an initial goal and that the broader plan also included the development of eight greenfield oil blocks as part of a wider expansion of the country's energy sector.

President Donald Trump on Friday announced plans for the U.S. to take partial control of Venezuela's vast ‌oil reserves, betting that American companies can help revive the South American nation's battered energy industry while ​providing a new source ‌of crude to help lower U.S. fuel prices.

Trump provided few details on the agreement, saying only that the U.S. had secured majority control of more ‌than 65 billion barrels of Venezuela's proven oil reserves through a partnership with private business.

Venezuela has the world's largest proven oil reserves, but it produces only about 1.25 million bpd - far below its potential - after years ⁠of underinvestment, mismanagement and sanctions.

Rodriguez said the agreement could ‌generate about $209 billion in revenue for the ⁠Venezuelan state, based on a benchmark oil price of $65 per barrel, though she acknowledged crude prices could fluctuate. She said roughly $19 from each barrel ⁠produced ⁠and sold under the arrangement would flow directly to Venezuela, providing a significant boost to government revenue.

She said that the country 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."

Earlier on Saturday, dozens of pro-government groups gathered in downtown Caracas to protest against the U.S. presence in Venezuela.

Rodriguez ‌welcomed the ​agreement following Trump's announcement, saying it would ‌bolster economic growth and increase government revenue.

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 on Friday that Chevron was among the companies expected to finalize talks to transition its Venezuelan joint ventures into the country's new energy framework.