Caracas
\nVenezuelan interim President Delcy Rodriguez said on Saturday that an energy agreement with the United States would remain in force for 25 years, target an increase in crude output to 1.5 million barrels per day (bpd) and preserve the country\u2019s sovereignty over its natural resources.
\nRodriguez hailed the accord in a late-night address as a \u201chistoric\u201d deal that would help revive the economy and boost government revenue, saying it would help shape the country\u2019s future.
\n\u201cThis 25-year bilateral project envisages the development of 17 strategic oilfields with a production target of more than 1.5 million barrels per day,\u201d Rodriguez said on state broadcaster VTV.
\n\u201cThat figure relates solely to the bilateral agreement between Venezuela and the United States.\u201d
\nRodriguez added that the agreement\u2019s target of 1.5 million bpd was only an initial goal and that the broader plan also included the development of eight greenfield oil blocks as part of a wider expansion of the country\u2019s energy sector.
\nPresident Donald Trump on Friday announced plans for the US to take partial control of Venezuela\u2019s vast oil reserves, betting that American companies can help revive the South American nation\u2019s battered energy industry while providing a new source of crude to help lower US fuel prices.
\nTrump provided few details on the agreement, saying only that the US had secured majority control of more than 65 billion barrels of Venezuela\u2019s proven oil reserves through a partnership with private business.
\nVenezuela has the world\u2019s largest proven oil reserves, but it produces only about 1.25 million bpd\u2013far below its potential\u2013after years of underinvestment, mismanagement and sanctions.
\nRodriguez said the agreement could generate about $209 billion in revenue for the Venezuelan state, based on a benchmark oil price of $65 per barrel, though she acknowledged crude prices could fluctuate. She said roughly $19 from each barrel produced and sold under the arrangement would flow directly to Venezuela, providing a significant boost to government revenue.
\nShe said that the country retained \u201cownership of and sovereignty\u201d over its natural resources, \u201cwhile leveraging capital, technology and operational expertise to support the recovery of a strategic industry that has been severely affected by sanctions.\u201d
\nEarlier on Saturday, dozens of pro-government groups gathered in downtown Caracas to protest against the US presence in Venezuela.
\nRodriguez welcomed the agreement following Trump\u2019s announcement, saying it would bolster economic growth and increase government revenue.
\nVenezuelan officials are preparing to sign agreements next week granting new oil exploration and production rights to several companies, including US firms. Two sources close to the negotiations said on Friday that Chevron was among the companies expected to finalise talks to transition its Venezuelan joint ventures into the country\u2019s new energy framework.<\/p>\n","protected":false},"excerpt":{"rendered":"
Caracas Venezuelan interim President Delcy Rodriguez said on Saturday that an energy agreement with the United States would remain in force for 25 years, target an increase in crude output to 1.5 million barrels per day (bpd) and preserve the country\u2019s sovereignty over its natural resources. Rodriguez hailed the accord in a late-night address as […]<\/p>\n","protected":false},"author":2,"featured_media":564840,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-564826","post","type-post","status-publish","format-standard","has-post-thumbnail","category-world"],"yoast_head":"\n