The U.S. doesn’t have a state-owned oil giant. But in Venezuela, the federal government will control a company with the world’s 2nd largest reserves

The deal negotiated by the Trump administration involves 65 billion barrels of Venezuelan oil reserves, giving the U.S. federal government control of 55% of a new joint venture’s production, making it the world’s second-largest corporate holder of proven reserves after Saudi Aramco. Venezuela holds the world’s largest oil reserves, estimated at 303 billion barrels, nearly seven times the U.S. proven reserves of 46 billion barrels. According to Venezuela’s interim president Delcy Rodriguez, the deal is expected to bring in more than $100 billion in investment and generate $209 billion for the Venezuelan government. Venezuela’s current oil production stands at just 1.1 million barrels per day, sharply down from a peak of 3.5 million barrels more than 20 years ago. U.S. oil giant Chevron is reportedly close to a deal to expand its long-standing operations in Venezuela, while Halliburton and Italy’s Eni are also in talks to participate in Venezuela’s energy sector.

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