Venezuela’s interim leader, Delcy Rodriguez, has insisted that the country will retain ownership and sovereignty over its natural resources under a new oil agreement that gives the United States significant access to Venezuela’s vast reserves.
The assurance came after US President Donald Trump described the agreement, which gives the United States majority control of 65 billion barrels of Venezuela’s proven oil reserves, as “the biggest oil deal in world history.”
“One thing must be absolutely clear: Venezuela retains ownership and sovereignty over its resources,” Rodriguez said during a televised address on Saturday.
She said the agreement was designed to transform Venezuela’s “cold, inert” underground resources into “a source of social and economic well-being for the people of Venezuela.”
The Venezuelan government said the deal would attract $100 billion in private investment to revive the country’s oil industry.
However, limited public details about the agreement have fuelled concerns among Venezuelans, including some supporters of the government, over its potential impact on national sovereignty and the distribution of its economic benefits.
“We don’t know who this will benefit — whether it’s Venezuela or (the United States),” said Jesus Salazar, a 68-year-old security guard.
“I have my doubts, but we’ll have to wait and see what happens.”
Pressure and Economic Reforms
Venezuela has been under intense pressure from the Trump administration since January, when American forces ousted and captured long-time ruler Nicolas Maduro.
Rodriguez, who previously served as Maduro’s vice president, remained in office as interim leader.
Venezuela’s ruling party on Saturday backed economic policies aimed at attracting investment, saying the measures would help the country recover from more than a decade of economic sanctions, unilateral coercive measures and blockades.
The party has consistently blamed US sanctions for the collapse of Venezuela’s economy.
Rodriguez has also introduced reforms in Venezuela’s mining and petroleum industries, opening sectors previously under tight state control to greater private and foreign investment.
Washington has meanwhile eased sanctions imposed on Venezuela’s oil sector under the Maduro government.
Oil production increased by 29.8 per cent between January and July, reaching 1.2 million barrels per day.
Despite the increase, production remains far below the three million barrels per day Venezuela produced about 25 years ago.
The new agreement aims to help restore output to those levels, although analysts say the process could take years.
“The increase in production won’t be seen for at least three or four years,” said engineer Oswaldo Felizzola, a professor at the Institute of Higher Studies in Administration in Caracas.
Felizzola said US involvement could help provide confidence for investors in a country that has struggled to attract major capital for more than a decade.
“Without this, these fields would not be developed over the next 10 or 15 years,” he said, adding that state-owned Petroleos de Venezuela lacked the financial resources required to develop the fields.
Oil Deal Raises Hopes for Recovery
The scale of the proposed investment has raised hopes that Venezuela’s struggling economy could benefit from a major revival of its oil industry.
The country suffered an 80 per cent economic contraction between 2014 and 2021, pushing millions of Venezuelans into poverty.
Many workers survive on a monthly minimum wage equivalent to about $0.16, alongside government subsidies that can reach $240 per month.
That remains well below the estimated $730 required to purchase basic food necessities for a family of five.
Carlos Baco, a 74-year-old government employee, said he hoped the new oil revenues would eventually improve living conditions.
However, he said the recent increase in oil production had yet to translate into relief for ordinary Venezuelans.
“Consumer goods and food are more expensive… the dollar is rising and prices are going up,” he said. “It’s impossible here.”
Rodriguez has promised more than $204 billion in tax revenue from the agreement but has not provided further details.
Analysts See Opportunity Despite Concerns
Some analysts have welcomed the investment despite the lack of detailed information about the agreement.
Elias Ferrer of the Orinoco think tank said the investment represented an improvement on leaving the country’s vast oil reserves undeveloped.
“It’s undoubtedly better than before. Before, this oil wasn’t being extracted; if no one extracts it, no one pays royalties, and no one profits from it,” he said.
Attorney Dolores Dobarro, Venezuela’s former deputy minister of energy, said the agreement could provide an opportunity to revive the country’s oil industry if implemented properly.
“If everything is done correctly… this will be a great opportunity for Venezuela to see its oil sector revived,” she said.
As Venezuela prepares for a major expansion of foreign investment in its energy sector, Rodriguez has sought to reassure citizens that the country will not surrender ownership of its resources.
But questions over transparency, sovereignty and how the expected revenues will benefit ordinary Venezuelans are likely to remain central to the debate over the landmark US oil agreement.
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