Rodríguez outlined the agreement’s parameters in a televised address Saturday, confirming a 25-year term targeting production above 1.5 million barrels per day. The project encompasses development of 17 strategic oilfields plus eight greenfield blocks in the Orinoco Oil Belt. Venezuela currently produces only 1.25 million barrels daily, well below potential after years of underinvestment, mismanagement and sanctions. Rodríguez stated approximately $19 from each barrel sold under the agreement flows directly to Venezuela, potentially generating $209 billion in total state revenue at $65 per barrel, though she acknowledged crude price volatility.
The agreement requires congressional approval for Strategic Petroleum Reserve purchases and substantial infrastructure investment before production can increase meaningfully. Venezuela possesses the world’s largest proven oil reserves but decades of deteriorating energy infrastructure necessitate significant capital deployment. The deal involves collaboration with Venezuelan businessman Alejandro Betancourt López, whose family controls North American Blue Energy Partners, Venezuela’s second-largest private oil producer.
Implementation details remain limited. U.S. officials indicated the new structure creates the world’s second-largest private oil company by reserves, with a 55 percent U.S. stake through equity participation and cost-price purchase rights. Venezuelan authorities plan to sign exploration and production agreements with multiple companies including American firms next week. Pro-government groups protested in central Caracas Saturday against U.S. presence in Venezuela’s energy sector, while former Venezuelan Planning Minister Ricardo Hausmann termed the agreement “shameful,” questioning Rodríguez’s legitimacy to commit national resources under such terms.
This article was curated and published as part of our South American energy market coverage.
