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Venezuela to Earn $209 Billion From Oil Deal With US Over 25 Years

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An oil production deal between Venezuela and the US that could revive the South American country's languishing energy sector, has a duration of 25 years, said Acting President Delcy Rodriguez, in an address posted on YouTube channel FirstPost.

Reuters reported that the declaration was made on Saturday.

Venezuela would earn about $209.3 billion from the deal with the US or about $19 per barrel extracted, based on an illustrative price of $65 per barrel, Rodriguez said.

The deal with the US will add oil production of more than 1.5 million barrels per day, while the country will produce more through separate deals with producers including Chevron (CVX), Eni (E), Shell (SHEL) and BP (BP), she said.

"We want to be an energy power. Big producer of oil, important gas exporter and to have a big development of petrochemicals nationally," Rodriguez said.

US President Donald Trump announced the deal on Friday, offering few details other than confirming the US had secured control over more than 65 billion barrels of Venezuelan proven reserves in a partnership with the private sector, Reuters said.

Despite having the world's largest proven oil reserves, the country's output has declined amid political and economic instability that has stifled investment, to about 1.25 million bpd.

Reuters reported that crowds of pro-government groups gathered in the capital Caracas on Saturday to protest the presence of the US in Venezuela, while other media reported that the deal has drawn ire on all sides of the political divide.

Rodriguez stressed in her declaration that Venezuela retains sovereign control and ownership over the resources.

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Commodities

US Natural Gas Prices Rise for 3rd Straight Week on Bullish Storage, Weather Momentum

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$BKR
Commodities

Market Chatter: Pentagon Weighs Venezuela Oil Partnership Covering 17 Fields

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Commodities

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