Trump’s ‘biggest oil deal in world history’ in Venezuela reeks of ‘colonial cronyism’ and could easily fall apart, experts say

President Trump’s plan for the U.S. to own majority control of Venezuelan oilfields harkens back to a century-old era of colonialism and backroom dealmaking with Venezuelan oilmen and politicians, energy and geopolitical analysts said.

While a revitalization of Venezuela’s dilapidated oil industry may be heading in the right direction , the process will require huge infusions of new investment.

It will occur on a timeline that extends far beyond the administrations of Trump and interim Venezuela President Delcy Rodriguez—meaning any success will take years to come to fruition.

“If the U.S. scheme in Venezuela sounds colonial, that’s because it is,” said Gregory Brew, senior energy analyst with the Eurasia Group.

“This is the Trump administration trying to increase U.S. revenue from Venezuelan oil production.

It’s extremely unusual.

It’s probably unprecedented in the history of the international oil industry.” The closest comparison, he said, is over 50 years ago when the U.K. owned a majority of BP (previously the Anglo-Persian Oil Company) and developed oil resources in Iran and Iraq.

Trump announced the deal over the weekend, calling it the “biggest oil deal in world history.” The U.S. would control more than 65 billion barrels of proven oil reserves in 17 oilfields in Venezuela.

Although most of the details remain unknown publicly, the agreement would operate through the second-largest, private Venezuelan oil producer, North American Blue Energy Partners (NABEP).

The U.S.

Department of Defense would own a 55% stake in the oil production.

Chevron , which never left Venezuela after the expropriation of oil assets that caused other U.S. companies to flee almost 20 years ago, is the top private producer.

“The deal more than doubles American oil reserves, dramatically increases domestic supply, and is projected to substantially lower gas prices for all Americans long into the future,” the White House said in a statement.

The White House and NABEP did not respond to requests for interviews and additional comment.