Oil pact with US to last 25 years, has production target of 1.5M barrels a day: Rodríguez
Venezuela’s interim president, Delcy Rodríguez, defended a sweeping oil agreement with the United States as a diplomatic and economic breakthrough. In a televised address on Saturday, she said the 25-year project would pair Venezuelan reserves and workers with American capital and technology while preserving national ownership of the country’s oil.
Rodríguez said the agreement would develop 17 strategic fields and target production of more than 1.5 million barrels per day. She described the arrangement as a straightforward exchange: Venezuela would contribute its oil reserves, industry and workers’ experience, while the United States would provide capital and technology to help revive production.
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She said Venezuela would retain sovereignty over its resources and receive about $19 for each barrel produced and sold. Based on an oil price of $65 per barrel, Rodríguez estimated the project could generate more than $209 billion for the Venezuelan state, money she said would support public services, health care, education, roads, jobs and infrastructure.
“We are opening a new stage of cooperation, investment and production for the benefit of the Venezuelan people,” Rodríguez said.
Rodríguez cast the deal as a turn toward diplomacy after years of confrontation between Caracas and Washington. She said Venezuela had chosen “the path of diplomacy” to turn differences into cooperation, investment and production, and thanked President Donald Trump, Secretary of State Marco Rubio and the U.S. government for their role in reaching the agreement.
The agreement, announced by Trump on Friday, would give the United States access to tens of billions of barrels of Venezuelan crude. Key details, including its legal structure, timeline, participating companies and political conditions, remain unclear. Trump described it as “the biggest oil deal in world history,” saying it would expand U.S. oil supply and lower gas prices.
Elections or oil deal? Which is first?
Sen. Ted Cruz, R-Texas, said Sunday on NBC’s Meet the Press that the agreement could benefit the U.S. economy, American jobs and long-term gas prices. But he said Venezuela should hold free and fair elections before the oil pact is finalized.
“There need to be democratic, free elections in Venezuela,” Cruz said. He said the vote should take place rapidly and, in his view, no later than the middle of next year.
“Delcy Rodríguez was Nicolas Maduro’s vice president. Maduro was illegitimate. He was a Marxist. He had seized power contrary to the will of the voters,” Cruz added, “I believe the administration is working towards this, that there should be free and fair elections before an oil deal is finalized.”