Venezuela Keeps Oil Sovereignty
Venezuela’s acting president, Delcy Rodriguez, said on Saturday that the country will retain ownership and sovereignty over its oil resources following the agreement reached with the United States, which provides for the participation of private operators and investment exceeding 100,000 million dollars.
The agreement, which will run for 25 years, envisages the development of 17 strategic fields with a potential of 65,000 million barrels of proven reserves and seeks to significantly raise Venezuelan oil production. Rodriguez defended the deal as a way to attract capital, technology and infrastructure and to revive an industry battered by years of sanctions.
“One thing must be absolutely clear: Venezuela retains ownership and sovereignty over its resources while it uses capital, technology and operating capacity to leverage the recovery of a strategic industry hard hit by sanctions,” Rodriguez said, adding that the aim is to turn the oil reserves into “production, opportunities, wellbeing and future” for the population.
Major Oil Investment Agreement
The leader estimated that, with a reference price of 65 dollars per barrel, the Venezuelan state could receive around 209,335 million dollars in revenue, equivalent to about 19 dollars for each barrel produced and sold.
The project also envisages eight new blocks in the Orinoco Oil Belt, with minimum royalties of 16% and income tax of 34%, according to Rodriguez. The acting president said Caracas chose diplomacy to turn its differences with Washington into cooperation and investment.
The leader thanked US President Donald Trump and Secretary of State Marco Rubio for their involvement in the negotiations and said the agreement would enable progress towards a Venezuela “as an energy power”, with greater oil production, gas exports and petrochemical development.
Venezuela Eyes Energy Power
Trump, for his part, described the pact as the largest oil deal in history and claimed that the United States would obtain majority control over the reserves involved, a characterisation that contrasts with Caracas’s insistence on preserving the ownership and sovereignty of its resources.
Presidency of Venezuela, via Viory.Video
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