Venezuela agrees oil cooperation with USA

Mexico City (ANTARA) - Venezuelan Acting President Delcy Rodriguez stated that under an oil development agreement with the United States, the country’s revenue could reach approximately $209 billion or $19 per barrel produced and sold.

“Specifically, this means that for every barrel produced and sold, about $19 goes directly to our country,” Rodriguez said during her speech.

She explained that the calculation is based on a price of $6lar65 per barrel, which could be higher or lower.

The agreement regulates the payment of royalties and profit taxes to the state. Specifically, for eight new blocks to be developed in the Orinoco oil belt, the minimum royalty will be 16 per cent, while the profit tax will be 34 per cent.

According to Rodriguez, the bilateral agreement with the United States is valid for 25 years and governs the development of 17 strategic fields to increase production to more than 1.5 million barrels per day.

“In return, Venezuela gains production output, jobs, infrastructure investment, significant revenue for the state, as well as a supply chain for the national industry,” said Rodriguez.

Venezuela’s objectives are not limited to this agreement, she added, but also include other important deals with major corporations.

Venezuela aims to become an energy powerhouse, a major oil producer, a significant gas exporter, and to develop its national petrochemical industry, she noted.

Venezuela maintains ownership and sovereignty over its resources, while simultaneously utilising capital, technology, and operational capabilities to rebuild a strategic industry that has been heavily impacted by sanctions.