Washington DC: US President Donald Trump said on Friday (local time) that his administration has reached a massive oil agreement with Venezuela that grants the United States majority control over 65 billion barrels of proven petroleum reserves.

The agreement, which Trump proclaimed as "the biggest oil deal in world history," will inject nearly $100 billion in private investment into Venezuela, according to US Secretary of State Marco Rubio.

Venezuela holds the world's largest proven oil reserves. Its administration has operated under intense pressure and close monitoring from the Trump team since US forces ousted and captured long-time leader Nicolas Maduro in January, permitting his then vice president, Delcy Rodriguez, to remain as interim leader provided she aligns with American policy.

Trump has made no secret of his desire to secure Venezuelan crude for the US, noting in a statement announcing the deal on his Truth Social platform that the arrangement will more than double domestic US oil reserves.

Caracas confirmed on Friday that Venezuela has signed a major oil deal with the United States, granting Washington majority control over 65 billion barrels of proven petroleum reserves.

The "historic" agreement would "have a significant impact on the rebirth of our nation," interim leader Delcy Rodriguez wrote on social media, praising a potential investment of "more than $100 billion and more than $209 billion in tax revenue for the State."

Trump indicated that Secretary of State Marco Rubio and Secretary of Defence Pete Hegseth finalised the transaction with Rodriguez "through a partnership with private business."

"This Transaction will greatly strengthen the already growing relationship between Venezuela and the United States!" Trump wrote.

Rubio stated the agreement illustrated how "President Trump's bold foreign policy is driving America First wins: securing stable reserves and low-cost oil in our Hemisphere and lowering gas prices here at home."

"For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela's economy," the chief US diplomat posted on X, without elaborating further.

News site Axios reported Thursday that both nations were negotiating terms over a dozen productive oil fields containing 90 billion barrels of proven reserves, roughly a third of Venezuela's total proven reserves of 300 billion barrels, citing two US officials.

In exchange for an equity stake, private commercial entities, including American enterprises, would develop the fields and direct an increased share of oil revenue back to Venezuela, according to Axios.

Axios further noted the transaction would more than double US crude reserves at a time when the nation's strategic petroleum reserve stands at a 40-year low.

Trump also maintained that the agreement will reduce petrol prices for American consumers, a central domestic concern as his approval ratings decline ahead of the November mid-term elections following the launch of a war with Iran that disrupted global crude supplies.

The Trump administration has been encouraging US businesses to invest in Venezuela, though firms remain cautious due to dilapidated local infrastructure and previous state seizures of foreign assets by the government in Caracas.

Chevron, the sole US oil corporation actively operating in Venezuela when Maduro was removed, noted in July that it had expanded its daily crude output to 280,000 barrels and intends to raise production by 50 per cent by the end of 2028.

ANI