US secures 55% of 65B-barrel Venezuela oil for 100 years

Venezuela confirmed an oil agreement granting the United States majority control over 65 billion barrels of reserves across 17 fields, with development rights set for 100 years. The structure includes a 55% effective output share for the US, an ownership stake, and rights to purchase oil at cost.

Scale and Control

Total reserves covered: 65 billion barrels across 17 fields. The US receives majority operational control and 100-year development rights. Effective US output share: 55%, equal to about 35.8 billion barrels.

Benchmark Valuations

At WTI crude near $83 per barrel, gross market value of total reserves: about $5.4 trillion. Gross market value of the US share of 35.8 billion barrels at current prices: about $3 trillion.

Quality Adjustments and Net Economics

Most Venezuelan output is heavy, sour crude that trades at a discount to benchmarks and requires higher blending and refining costs. Using an illustrative net economic value of $25 to $35 per barrel after discounts and development and operating costs, 35.8 billion barrels could generate up to about $1.25 trillion in cumulative economic value over the life of the fields.

Capital and Fiscal Effects

Planned investment to develop the fields: $100 billion. Venezuela estimates tax revenue from these projects at $209 billion.

Context

The agreement ranks among the largest energy deals by reserves and duration.