Washington and Caracas seal 25‑year oil partnership granting U.S. majority share

In a development that could reshape the global energy landscape, the United States and Venezuela have concluded a 25‑year agreement aimed at reviving the South American nation's struggling oil industry. The deal grants the two sides joint rights to explore and develop untapped oil fields, with the exploration window extending for a full century.

Under the terms of the pact, the United States will receive a 55% stake in the production that emerges from the newly discovered reserves. The remaining 45% will stay under Venezuelan control, allowing Caracas to retain a significant share of any future output. Proponents say the arrangement could channel substantial foreign capital into Venezuela, a country whose oil output has plummeted amid economic turmoil and sanctions.

The agreement also outlines a framework for tax revenue sharing, promising that Venezuela will benefit from a new stream of fiscal income as production ramps up. Analysts note that the long‑term nature of the contract—spanning a quarter of a century—signals confidence from both governments in the viability of the project despite the geopolitical challenges that have long surrounded Venezuelan oil.

U.S. officials have described the pact as the most ambitious oil transaction of the current administration, highlighting its potential to secure a reliable supply of crude for American markets while supporting a partner in need of economic relief. Critics, however, caution that the success of the venture will depend on the stability of Venezuela’s political environment and the ability to attract the promised investment.

If the partnership delivers on its promises, it could mark a turning point for Venezuela’s oil sector, which has seen output fall to historic lows. For the United States, the deal represents a strategic foothold in a region traditionally dominated by other global powers, reinforcing its influence over energy flows in the Western Hemisphere.