Washington — The United States has announced an agreement to take control of 65 billion barrels of Venezuela’s oil reserves, President Donald Trump said on 28 August 2026, in comments that follow a US operation earlier this year to remove Nicolás Maduro from power.
"The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!"
Trump said the deal was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and Venezuela's interim president, Delcy Rodríguez, according to reporting by the Associated Press. The announcement comes roughly nine months after a US military operation at the president’s direction captured Maduro and transported him to the United States to face federal narcoterrorism and drug‑trafficking charges.
Facts, scale and context
Venezuela has one of the largest known crude oil endowments in the world. The US Energy Information Administration estimates the country’s in‑ground reserves at about 303 billion barrels — roughly 17% of global reserves, the AP reported. The 65 billion barrels in the announced agreement therefore represent a substantial but partial share of that total.
The country’s crude production, however, has been constrained by deteriorating infrastructure. Despite vast reserves, Venezuela is producing only about 1% of the world’s oil because wells, refineries and logistics are in poor condition, the AP said.
Why the deal matters
- US energy security: Trump has been under domestic pressure to address high petrol prices and dwindling strategic stockpiles. The US Strategic Petroleum Reserve fell below 300 million barrels in early August 2026, a reduction of more than 100 million barrels since the start of the year, the AP reported.
- Geopolitics: Direct control — or effective management — of large Venezuelan reserves would shift leverage in global oil markets and alter relations with other producers and consumers.
- Precedent and legality: The announcement follows a military operation that removed Venezuela’s sitting leader and raises questions about how control over sovereign natural resources is being transferred and under what legal authority.
Those who gain from the arrangement, on the face of it, include the US government and US energy firms that could regain access to Venezuelan hydrocarbons. The costs will be borne by Venezuelan institutions and citizens if the country’s assets are managed or exploited under foreign control; the AP reporting also implies potential legal and diplomatic costs for the US.
Outstanding questions
The AP account leaves several important issues unanswered. It does not provide details on the legal mechanism for the transfer of control, the timeline for exploitation, how revenues will be shared or secured, or the role — if any — of international organisations. It also does not spell out how existing Venezuelan state energy companies, personnel and infrastructure will be treated.
There is also the practical question of production capacity. Experts cited by the AP note Venezuela’s reserves are largely mapped, but decades of underinvestment mean output cannot be ramped up quickly without substantial repairs and capital expenditure.
| Item | Figure |
|---|---|
| Venezuela estimated reserves | 303 billion barrels |
| Barrels in announced agreement | 65 billion barrels |
| US Strategic Petroleum Reserve (early Aug 2026) | Below 300 million barrels |
For South Africa and other oil‑importing countries, the development could have mixed effects. Any increase in global supply might ease price pressures over time, but immediate market reactions could be volatile given the unusual circumstances of the transfer and the legal and security questions it raises.
For now, the announcement is a significant diplomatic and economic signal. It illustrates how energy policy, military action and international law are intertwining in ways that will require sustained oversight and clarification from the actors involved.
