Trump hails "biggest oil deal in world history" with Venezuela

Trump hails "biggest oil deal in world history" with Venezuela

By Marc Caputo

President Trump said Friday the U.S. has struck a deal with Venezuela to take control of oil fields with 65 billion barrels of reserves.

Why it matters: The unprecedented deal vastly increases U.S. energy security and dominance in the Western Hemisphere.

Axios first reported the deal was in the offing Thursday.

Zoom in: The details have yet to be released, but a source familiar described the unorthodox arrangement as a type of "public-private partnership" between the U.S., private companies and Venezuela.

"It's not a purchase. They're giving us equity. It's a type of corporate transaction where the U.S. has equity in the companies," a U.S. government source said.

The U.S. would have access to what's called "off-take oil," a guaranteed amount of crude that would be exchanged at cost, the source said.

What they are saying: "The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!" Trump wrote on Truth Social.

Secretary of State Marco Rubio, who spearheaded negotiations with Venezuela's interim president, Delcy Rodriguez, called the deal "a huge win for both the American and Venezuelan people."

"For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela's economy," Rubio said.

Between the lines: The unique arrangement would be overseen by the Pentagon's Office of Strategic Capital, which helps finance efforts that further U.S. national defense.

The intrigue: Whether the deal has been signed is up for debate. One administration source said it had been finalized, but another said it wasn't completely wrapped up as of Friday night.

"It's going to happen. It's just a question of when," a second source told Axios.