U.S. government set to take majority stake in Venezuelan oil venture

The Trump administration’s deal involving 65 billion barrels of Venezuelan oil reserves would give the U.S. government control of 55% of a new joint venture’s effective output through equity ownership and oil production, according to a U.S. official. A private Venezuelan operator would hold the remaining share.

Venezuela’s interim president, Delcy Rodriguez, said the arrangement would bring more than $100 billion in investment and generate $209 billion for the government. The venture would become the world’s second-largest corporate holder of proven oil reserves, the official said.

The deal’s details remain unsettled, and energy experts questioned how quickly investment could revive Venezuela’s damaged oil industry. Production is about 1.1 million barrels a day, far below its peak of 3.5 million, and restoring output would require billions of dollars and years of work.

Read the full story at fortune.com.