Trump hails "biggest oil deal in world history" with Venezuela
President Trump said Friday the U.S. has struck a deal with Venezuela to take control of oil fields with 65 billion barrels of reserves.
Why it matters: The unprecedented deal vastly increases U.S. energy security and dominance in the Western Hemisphere.
Axios first reported the deal was in the offing Thursday.
Zoom in: The details have yet to be released, but a source familiar described the unorthodox arrangement as a type of "public-private partnership" between the U.S., private companies and Venezuela.
"It's not a purchase.
They're giving us equity.
It's a type of corporate transaction where the U.S. has equity in the companies," a U.S. government source said.
The U.S. would have access to what's called "off-take oil," a guaranteed amount of crude that would be exchanged at cost, the source said.
What they are saying: "The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!" Trump wrote on Truth Social .
Secretary of State Marco Rubio, who spearheaded negotiations with Venezuela's interim president, Delcy Rodriguez, called the deal "a huge win for both the American and Venezuelan people." "For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela's economy," Rubio said.
Rodriguez confirmed the deal in a public statement where she lauded the Trump Administration and said the deal would mean $209 billion in additional tax revenue for Venezuela.
Between the lines: The unique arrangement would be overseen by the Pentagon's Office of Strategic Capital, which helps finance efforts that further U.S. national defense.
The intrigue: Immediately after Trump's initial announcement, administration officials disagreed on whether the deal had been finalized.
But once Rodriguez issued her statement praising the accord, U.S. officials said it was a done deal, though more details may need to be worked out.
5News aggregated this summary from the outlet’s public feed. The full article, with all the context, is on www.axios.com — the content belongs to Axios.
