Negotiations are underway for the Trump administration to secure long-term rights to vast oil fields in Venezuela, a plan that carries significant costs and legal complexities while aiming to encourage cautious energy firms to drill in a high-risk region. Three individuals familiar with the discussions have indicated the proposal is still being refined and could be modified or abandoned entirely.
The emerging framework suggests that as crime and severe logistical challenges deter private investors, the US would take a more direct hand in managing Venezuela's petroleum reserves. Two sources involved in the talks, who requested anonymity due to lack of authorization to speak publicly, noted that the terms under discussion involve the US securing long-term contract rights to roughly one-third of the country's oil reserves, translating to about 90 billion barrels of crude oil.
A list outlining the agreement identifies 17 oil fields where the US would acquire extraction rights. Several of these sites lack any supporting infrastructure, including processing hubs and transport terminals needed for oil treatment and export. Meanwhile, those fields with existing facilities have deteriorated from years of neglect and widespread theft of mechanical equipment.
Developing these assets would require billions of dollars in upfront investment, alongside an expensive security framework to protect workers and production facilities in a region plagued by violent instability. The US could subcontract the acquired fields to oil companies, thereby reducing the financial burden on taxpayers and persuading these firms to invest in projects Washington has already backed. However, even with that approach, the US government would likely need to absorb substantial risks in the development of Venezuela's oil infrastructure.
Officials familiar with the negotiations say Secretary of State Marco Rubio and Energy Secretary Chris Wright aim to travel to Venezuela early next month to announce a potential deal. Yet, some industry insiders question whether a substantive agreement will materialize by then.
Significant obstacles remain, including strong domestic opposition within Venezuela to surrendering control of its natural resources to the US. Finalizing the accord might also require a constitutional amendment in Venezuela, which carries uncertain prospects. The US government did not respond to requests for comment, though one official confirmed that President Donald Trump spoke by phone this week with Venezuela's acting president, Delcy Rodriguez, marking one of the few direct communications between the two leaders.
It remains unclear how much taxpayer funding Washington plans to allocate for oil extraction versus how much it will rely on private US firms for field development. Negotiations appear to be anchored in Venezuela's existing joint venture legal structure, allowing the US to gain development rights while Venezuela continues to secure a significant share of generated revenue.
The proposed agreement faces resistance not only in Venezuela but also domestically within the US. Finalizing long-term contracts and development plans would require substantial government funding, likely needing congressional approval just as Republicans may lose control of the legislature in the upcoming midterm elections.
This initiative follows several ambitious announcements from the Trump administration regarding major US stakes in energy or natural resource production, most of which have yet to yield substantive results. Notable examples include US equity involvement in Ukraine's critical minerals reserves and a plan unveiled nearly a year ago to finance construction of a large nuclear reactor in exchange for ownership in Westinghouse Electric Company. Neither of these agreements has produced the breakthroughs in energy production that were initially touted.