Venezuela reveals details of 25-year oil deal with US

Venezuelan Acting President Delcy Rodríguez has revealed details of a 25-year oil agreement with the United States.

Rodríguez said the agreement covers 17 strategic oil fields and provides for an increase in production to more than 1.5 million barrels per day, according to Reuters.

According to her, with oil priced at around $65 per barrel, Venezuela expects to receive approximately $19 in revenue from each barrel. The country’s total state revenues from the agreement are expected to exceed $209 billion.

The agreement also provides for a 16% royalty payment and a 34% corporate income tax on companies operating the fields.

Under the deal, Venezuela will contribute its oil reserves, existing infrastructure and workforce, while the US side will provide capital and technology for the projects.

The investments are expected to create new jobs, develop infrastructure and help restore Venezuela’s oil industry, which has been severely affected by sanctions.

By Jeyhun Aghazada