Venezuela announces 25-year energy deal with United States

The Venezuelan government announced the signing of a 25-year bilateral energy agreement with the United States government. The project covers the development of 17 strategic fields and eight new greenfield blocks in the Orinoco Oil Belt, with a production target of more than 1.5 million barrels per day under the bilateral agreement.

The proposal projects $209.335 billion in revenues for the Venezuelan state, based on a reference oil price of $65 per barrel. Of this amount, approximately $19 per barrel would return directly to the country through a minimum 16% royalty and a 34% income tax.

Venezuela will retain ownership and sovereignty over its oil fields, while the United States and international investors will provide infrastructure, technology and capital to revive the energy industry.