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Venezuelan interim President Delcy Rodriguez said on Saturday that an energy agreement with the US would remain in force for 25 years, target an increase in crude output to 1.5 million barrels per day (bpd) and preserve the country's sovereignty over its natural resources.
Rodriguez hailed the accord in a late-night address as a "historic" deal that would help revive the economy and boost government revenue, saying it would help shape the country's future.
Trump provided few details on the agreement, saying only that the U.S. had secured majority control of more than 65 billion barrels of Venezuela's proven oil reserves through a partnership with private business.
Venezuela has the world's largest proven oil reserves, but it produces only about 1.25 million bpd - far below its potential - after years of underinvestment, mismanagement and sanctions.
Rodriguez said the agreement could generate about $209 billion in revenue for the Venezuelan state, based on a benchmark oil price of $65 per barrel, though she acknowledged crude prices could fluctuate. She said roughly $19 from each barrel produced and sold under the arrangement would flow directly to Venezuela, providing a significant boost to government revenue.
She said that the country retained “ownership of and sovereignty” over its natural resources, “while leveraging capital, technology and operational expertise to support the recovery of a strategic industry that has been severely affected by sanctions."
Earlier on Saturday, dozens of pro-government groups gathered in downtown Caracas to protest against the US presence in Venezuela.
Rodriguez welcomed the agreement following Trump's announcement, saying it would bolster economic growth and increase government revenue.
Venezuelan officials are preparing to sign agreements next week granting new oil exploration and production rights to several companies, including US firms.
Two sources close to the negotiations said on Friday that Chevron CVX.N was among the companies expected to finalise talks to transition its Venezuelan joint ventures into the country's new energy framework.
Also Read: Trump calls on Canadian companies doing business with US to relocate to avoid tariffs
Rodriguez hailed the accord in a late-night address as a "historic" deal that would help revive the economy and boost government revenue, saying it would help shape the country's future.
Trump provided few details on the agreement, saying only that the U.S. had secured majority control of more than 65 billion barrels of Venezuela's proven oil reserves through a partnership with private business.
Venezuela has the world's largest proven oil reserves, but it produces only about 1.25 million bpd - far below its potential - after years of underinvestment, mismanagement and sanctions.
Rodriguez said the agreement could generate about $209 billion in revenue for the Venezuelan state, based on a benchmark oil price of $65 per barrel, though she acknowledged crude prices could fluctuate. She said roughly $19 from each barrel produced and sold under the arrangement would flow directly to Venezuela, providing a significant boost to government revenue.
She said that the country retained “ownership of and sovereignty” over its natural resources, “while leveraging capital, technology and operational expertise to support the recovery of a strategic industry that has been severely affected by sanctions."
Earlier on Saturday, dozens of pro-government groups gathered in downtown Caracas to protest against the US presence in Venezuela.
Rodriguez welcomed the agreement following Trump's announcement, saying it would bolster economic growth and increase government revenue.
Venezuelan officials are preparing to sign agreements next week granting new oil exploration and production rights to several companies, including US firms.
Two sources close to the negotiations said on Friday that Chevron CVX.N was among the companies expected to finalise talks to transition its Venezuelan joint ventures into the country's new energy framework.
Also Read: Trump calls on Canadian companies doing business with US to relocate to avoid tariffs
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