Venezuela Signs Major Oil Deal with US Amid Controversy Over Authority

Venezuela has entered into a landmark oil agreement with the United States, confirmed by interim President Delcy Rodríguez. The deal, announced on August 28, 2026, grants US interests 55% effective control over oil output across 17 strategic fields, which contain approximately 65 billion barrels of proven reserves—about 22% of Venezuela's total oil reserves.

This public-private partnership is projected to attract over $100 billion in private investment and generate more than $209 billion in tax revenue for Venezuela over its 100-year lease term. Rodríguez has framed the agreement as a crucial step towards economic recovery and revitalization of the country's oil industry, which has suffered from years of mismanagement and sanctions.

However, the deal has sparked significant criticism from various sectors within Venezuela. Critics question Rodríguez's constitutional authority to commit the nation to such a long-term agreement, especially following her rise to power after the US-led capture of former President Nicolás Maduro in January 2026. The legitimacy of her government and the legality of the deal are contentious issues, particularly given that such large resource concessions typically require legislative approval.

Venezuela's oil output has dramatically declined over the past decade, and this agreement aims to boost production to 1.5 million barrels per day, a significant increase from recent lows. Analysts suggest that increased production could influence global oil prices and reshape dynamics within OPEC, where Venezuela's influence has waned in recent years.