President Donald Trump announced Friday that the United States reached an agreement with Venezuela giving the U.S. majority control of a venture with access to more than 65 billion barrels of the South American country’s proven oil reserves.

The sweeping deal would dramatically expand U.S. access to one of the world’s largest petroleum supplies.

The State Department and Pentagon negotiated the agreement, which gives the U.S. an effective 55% share of output from a new private joint venture, a U.S. official told MS NOW. Venezuela’s interim President Delcy Rodríguez granted the venture 100-year concessions covering oil fields with proven reserves, the official added.

The U.S. share will be divided between equity in the venture’s holding company and oil provided to the U.S. government at cost. As production increases, that oil is expected to help replenish the Strategic Petroleum Reserve.

The new entity would become the world’s second-largest corporate holder of proven oil reserves, behind Saudi Aramco, the official said. The official did not identify the company.

Trump called the agreement “THE BIGGEST OIL DEAL IN WORLD HISTORY” in a Truth Social post, adding the deal would come “at no cost to the American Taxpayer” and more than double American oil reserves. The president also predicted it would substantially lower gas prices, though it was not immediately clear how quickly increased production could affect prices.

The Trump administration has faced mounting criticism over higher gas prices amid the war in Iran and ahead of November’s midterm elections. The national average for a gallon of regular gasoline is $4.10, according to AAA, up from $3.21 a year ago.

Venezuela holds roughly 303 billion barrels of proven crude oil reserves, the largest amount in the world and about 17% of global reserves, according to the U.S. Energy Information Administration. Much of that oil, however, is heavy crude that requires significant investment and infrastructure to extract and process.

The agreement marks the latest shift in U.S.-Venezuela relations months after American forces captured and removed former President Nicolás Maduro in January. Washington has since sought to secure Venezuelan crude for U.S. refineries while encouraging American investment in the country’s deteriorated energy sector. Venezuela is currently producing over 1 million barrels of crude per day.

Secretary of State Marco Rubio called the deal a “huge win” for both Americans and Venezuelans.

“For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela’s economy,” Rubio said.

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