U.S. Federal Government Gains Majority Stake in Venezuelan Oil Venture
· World · Fortune, New York Times
The U.S. government will control 55% of a new joint venture to extract oil from Venezuelan fields under a 100-year lease agreement. This deal grants the U.S. access to 65 billion barrels of crude reserves, surpassing the total proven U.S. reserves of 46 billion barrels. Interim president Delcy Rodriguez stated the agreement is expected to generate $209 billion for Venezuela and attract $100 billion in investment. The move comes as the U.S. Strategic Petroleum Reserve has dropped to its lowest level since 1982, with officials noting that the new production will help restock domestic supplies. The agreement follows previous U.S. government investments in firms like Intel and MP Materials.
Why it matters
This deal marks a significant shift in U.S. energy strategy by establishing direct federal control over foreign oil assets to bolster domestic reserves. It also signals a major policy pivot regarding Venezuela following previous U.S. efforts to target the leadership of Nicolás Maduro.
Read the original report — Fortune
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