‘Venezuela retains sovereignty’: Delcy Rodriguez defends sweeping US oil deal
&imwidth=600&imheight=450&format=webp&quality=medium "‘Venezuela retains sovereignty’: Delcy Rodriguez defends sweeping US oil deal")
Venezuela's interim President Delcy Rodriguez Photograph: (AFP)
Delcy Rodriguez says Venezuela will retain sovereignty over its oil despite a major US deal, as public doubts grow over who will benefit from $100 billion in planned investment.
Venezuela’s interim leader Delcy Rodriguez on Saturday (Aug 29) sought to calm growing public concern over a sweeping oil agreement with the United States, insisting that Caracas will retain sovereignty over the country’s vast petroleum reserves despite Washington gaining major access to them.
The deal gives the United States majority control over 65 billion barrels of Venezuela’s proven reserves, with President Donald Trump hailing it as “the biggest oil deal in world history.”
“One thing must be absolutely clear: Venezuela retains ownership and sovereignty over its resources,” Rodriguez said in a televised address on Saturday (Aug 29).
She said the agreement was intended to turn “cold, inert” resources lying underground into “a source of social and economic well-being for the people of Venezuela.”
Caracas has said the arrangement could attract $100 billion in private investment to revive an oil industry crippled by years of economic turmoil, sanctions and chronic underinvestment. But details of the agreement remain limited, fuelling concerns about what Venezuela may be giving up in return.
The unease extends beyond government opponents. “We don’t know who this will benefit – whether it’s Venezuela or (the United States),” security guard Jesus Salazar said. “I have my doubts, but we’ll have to wait and see what happens.”
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Can Venezuela’s oil industry recover?
Rodriguez has moved to open Venezuela’s tightly controlled mining and oil sectors to greater private and foreign investment, while Washington has eased restrictions on the country’s oil industry.
Production rose nearly 30 per cent between January and July, reaching 1.2 million barrels per day. However, that remains far below the roughly three million barrels Venezuela produced a quarter-century ago.
Analysts warn any dramatic recovery will take years.
“The increase in production won’t be seen for at least three or four years,” said Oswaldo Felizzola, an engineer and professor at IESA in Caracas, as quoted by AFP.
For a country still struggling with widespread poverty and soaring prices, the stakes are high. Rodriguez has promised more than $204 billion in tax revenue, though details remain unclear.
Supporters of the deal argue foreign investment could revive an industry that Venezuela can no longer rebuild alone. “It’s undoubtedly better than before,” analyst Elias Ferrer said. “Before, this oil wasn’t being extracted; if no one extracts it, no one pays royalties, and no one profits from it.”
