Venezuelan acting president touts oil deal with the US

A massive deal that would give the US a stake in Venezuela's vast oil resources has drawn scepticism and anger in the South American country. This despite its Acting President Delcy Rodriguez frames the accord as a step toward economic recovery to modernise national oil industry.

Rodriguez promoted the project in a televised address, highlighting it's based on the premise that "each party contributes what it does best." She says Venezuela is contributing its oil, industry, and expertise of its workers while the capital and technology needed to recover and develop those assets will be provided by the American side. The deal, signed for 25 years, involves the development of 17 Venezuelan fields with a proven potential of 65 billion barrels.

Negotiated by US Secretary of State Marco Rubio and Defense Secretary Pete Hegseth alongside Caracas leadership, it gives the United States 55% effective output of the new private company, with purchase rights at cost intended to replenish the US' depleted strategic oil reserves and fuel its military.

In a series of social media posts, US President Donald Trump praises the new pact as "the biggest oil deal in world history" and says its signing will help bring down gas prices for Americans, after the prolonged war in Iran slows the shipping of Persian Gulf oil ahead of the November midterm elections.

Experts are warning that a significant boost in Venezuela's production is unlikely in the short term because reversing its dilapidated oil infrastructure will necessitate multi-year timelines and billions of dollars.

Media reports suggest it is not immediately clear when the country's production could start or how it's going to be funded.

In Caracas, a street seller notes he thinks those currently in power seem to be taking the measure in a bid to "cling to power" by handing over a huge amount of oil. Other residents are worried that they stand to gain little from the agreement whose terms remain largely opaque.

An architect says it is "outrageous" because Venezuelans feel powerless to intervene beyond raising awareness.