Caracas has reached a landmark agreement with Washington to export crude oil worth approximately $2 billion (200 crore dollars) to the United States. The deal, confirmed on Tuesday by US President Donald Trump, marks a significant shift in Venezuela’s oil exports, which have traditionally been heavily oriented towards China.
Under this agreement, Venezuela will now redirect a substantial portion of its crude production to the United States, potentially preventing a severe decline in output that could have destabilised the country’s energy sector. Observers note that the deal also sends a strong signal that Venezuela’s interim government is responding to US demands.
President Trump had stipulated that either Venezuela must open its oil sector to American companies or face potential military intervention. Following the agreement, Trump emphasised that the interim President of Venezuela, Delcy Rodríguez, should grant the US and private firms “full access” to the country’s oil resources.
The new arrangement also resolves a logistical bottleneck caused by US sanctions imposed last December, which left millions of barrels of Venezuelan crude trapped in tankers and storage facilities, unable to be shipped internationally.
Tensions between the two nations escalated further last Saturday when US special forces reportedly attempted to remove President Nicolás Maduro. Venezuelan officials condemned the operation as a “kidnapping” and accused the United States of attempting to seize their country’s vast oil reserves.
According to a social media post by President Trump, Venezuela will deliver between 30 and 50 million barrels of previously sanctioned crude to the United States. Trump added, “The oil will be sold at market prices, and I, as President of the United States, will oversee the funds to ensure they benefit both Venezuelans and Americans.”
US Secretary of Energy Chris Wright has been tasked with implementing the deal, with crude shipments expected to be delivered directly to US ports. Reuters sources indicate that some cargoes originally destined for China may now be rerouted to the United States, reflecting the shifting priorities of Venezuela’s oil trade.
Chevron, Venezuela’s key joint partner under the state-owned PDVSA, is currently managing the logistics of the exports. The company continues to extract and ship between 100,000 and 150,000 barrels of crude per day despite the sanctions, making it the only firm able to operate uninterrupted during recent disruptions.
Key Figures: Venezuelan Crude Oil Export to the US
| Parameter | Figure |
|---|---|
| Estimated oil volume | 30–50 million barrels |
| Approximate value | $2 billion (200 crore dollars) |
| Daily export via Chevron | 100,000–150,000 barrels/day |
| Change in oil price in US after announcement | -1.5% |
While the exact flow of funds to Venezuela remains uncertain due to PDVSA’s restricted access to international banking systems, the deal represents a strategic pivot for the country’s embattled oil industry and a potential political victory for President Trump.