How will Trump's oil deal with Venezuela work?

US President Donald Trump says his government has struck "the biggest oil deal in history", granting the US access to Venezuela's vast oil reserves.

Venezuela's Acting President, Delcy Rodríguez, says the deal will help to revive the country, and that it retains ownership over its resources.

The South American nation has the world's largest proven oil reserves, but produces far below its potential after years of underinvestment, mismanagement and sanctions.

Mr Trump announced the deal on Truth Social on Friday night, local time.

"The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!

"At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority US control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer.

"This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future, while helping to continue to set Venezuela on a course toward Tremendous Success and Great Prosperity."

Ms Rodríguez spoke about the deal in a televised national address on Saturday night, local time.

"This 25-year bilateral project envisages the development of 17 strategic oilfields with a production target of more than 1.5 million barrels per day," she said.

"That figure relates solely to the bilateral agreement between Venezuela and the United States."

Ms Rodríguez said the agreement could generate about $US209 billion ($291 billion) in revenue for Venezuela, based on a benchmark oil price of $65 per barrel, though she acknowledged crude prices could fluctuate.

She said roughly $US19 from each barrel produced and sold under the arrangement would flow directly to Venezuela.

She said the "historic" deal would help revive the country's economy and and boost government revenues, stressing it would preserve Venezuela's sovereignty over its natural resources,

"One thing must be absolutely clear: Venezuela retains ownership and sovereignty over its resources."