The historic agreement signed between Venezuela and the United States will mark a turning point in the country's history. In a message to the nation, President Delcy Rodríguez explained that this project aims to channel capital and infrastructure to transform the potential of the subsoil into tangible development and "guarantee the lives of all Venezuelans in the medium and long term within a comprehensive plan that includes projections for 'one year, five years, ten years, and fifty years.'" She emphasized that they are "thinking about the Venezuela of the future," based on an irrefutable reality: "the country possesses the largest proven crude oil reserves on the planet."
“But having resources underground isn’t enough. We need investment, technology, infrastructure, and productive capacity to transform that wealth into well-being for our people,” Rodríguez stated. In that regard, he emphasized that: “It’s pointless to have our oil reserves underground just so they appear in a statistic or an accounting and we can say, ‘We are the country with the largest reserves in the world,’ when we can’t convert them into development for Venezuela.”
"Our reserves must be transformed into well-being, prosperity, and happiness for this country, allowing us to recover our productive capacity and consolidate ourselves as an energy and production powerhouse. (...) In this way, we not only generate better income, public services, health, education, and roads for our people, but we also contribute to the energy security of the hemisphere and to a more balanced and stable international energy market," he said.
Binational commitment and production goals
The framework plan has a projected duration of 25 years and includes the development of 17 strategic fields in the national territory, aiming for a production of more than 1,5 million barrels per day through the bilateral scheme with Washington alone.
In response to citizens' questions about the real profitability for the nation, government projections indicate that, under a conservative scenario of $65 per barrel, "our country's income would reach a total of $209.335 billion for the Venezuelan State," which represents a direct contribution of "about $19" for each barrel traded.
“This agreement is based on a very simple premise. Each party contributes what it does best,” he explained. While “Venezuela contributes oil, its industry, and the experience of its workers of more than 100 years,” the North American counterpart will contribute the “capital and technology necessary to recover and develop those assets.” In return, the country will experience a leap in “production, employment, infrastructure investment, increased state revenue, and production linkages for national industry,” so “the benefits are immeasurable.”
Alongside this alliance, Caracas seeks to consolidate itself once again as an "energy powerhouse, a major oil producer, an important gas exporter, and a major national petrochemical development center," adding the participation of global firms such as Chevron, Repsol, Eni, Shell, and BP.
In addition, current conditions were compared with the contractual terms established three decades ago during the opening of the oil sector:
Associations from 30 years ago (4 Green Blocks):
- Royalties: 1%
- Income tax (ISLR): 34%
New Binational Project (8 Green Blocks):
- Minimum royalties: 16%
- Income tax (ISLR): 34%
The development of the eight new blocks greenfields In the Orinoco Belt, under these new requirements, it will allow "leveraging the country's recovery and advancing the improvements that all Venezuelans want, need, and deserve."
Diplomacy and sovereignty over industry
The diplomatic rapprochement with the White House was endorsed as the best way to "transform our differences into cooperation, and that cooperation into investment, production, well-being, and concrete results." The president expressed her direct appreciation to President Donald Trump, Secretary Marco Rubio, and their teams for their concerted efforts with the Venezuelan delegation.
Finally, President Delcy Rodríguez insisted that the country will not relinquish control of its natural resources: “Venezuela retains ownership and sovereignty over its resources while utilizing capital, technology, and operational capacity to leverage the recovery of a strategic industry severely impacted by sanctions.” Under a commitment to transparency, they concluded by asserting that “Venezuelans have the right to know how much is invested, how much is produced, and how much the State receives” in this process conceived as a stage of national rebirth.
