US and Venezuela sign historic oil deal

Venezuela and the United States have reached a major oil deal that would give Washington majority control over more than 65 billion barrels of Venezuela's proven oil reserves, US President Donald Trump and Venezuelan interim President Delcy Rodriguez announced, AFP reports.

Trump called the agreement "the largest oil deal in the history of the world," while Rodriguez said it would have a major impact on Venezuela's economic recovery.

The agreement comes nearly eight months after US forces captured Nicolas Maduro in Caracas on January 3 and took him to the US.

Rodriguez was sworn in as interim president two days later.

"Venezuela announces a historic agreement with the government of the United States of America, which will have a significant impact on the recovery of our nation," Rodriguez said.

According to Venezuelan authorities, the agreement includes the development of 17 strategic oil fields with total proven reserves of more than 65 billion barrels.

Private investments of more than $100 billion are forecast, while Caracas expects more than $209 billion in tax revenue.

The American side should take a 55 percent operating stake through a new partnership with private companies.

Rodriguez claims that the investments will enable the restoration and construction of key infrastructure for the Venezuelan oil industry.

"Our goal is to strengthen our position as an energy superpower by putting our vast reserves at the service of national development, job creation, increasing the income of our workers and the well-being of our people," she said.

Venezuela has the world's largest proven oil reserves, more than 300 billion barrels, but production has been well below potential capacity for years due to crumbling infrastructure, a lack of investment and years of sanctions.

The agreement comes at a time when the US Strategic Petroleum Reserve has been severely depleted due to oil spilling onto the market following supply disruptions caused by the war in the Middle East.

According to the latest data from the US Energy Information Administration, on August 21 there were about 289.7 million barrels of oil in the strategic reserves.

The United States has announced the release of a total of 172 million barrels from its strategic reserves, as part of an international campaign.

Full details of the new agreement with Venezuela have not yet been released, including the identities of all the private companies that will participate and how majority US control will be implemented.