The United States and Venezuela have announced a massive new oil agreement that could reshape Venezuela’s energy industry and its relationship with Washington for decades.

The deal, announced by U.S. President Donald Trump and confirmed by Venezuela’s interim President Delcy Rodríguez, is expected to run for 25 years and focus on the development of 17 strategic Venezuelan oil fields.

Those fields have the potential to contain approximately 65 billion barrels of oil.

Trump has described the agreement as the largest oil deal in history, while the Venezuelan government is presenting it as a major step toward rebuilding an industry that has suffered from years of underinvestment, sanctions and deteriorating infrastructure.

More Than $100 Billion in Investment

Under the agreement, the projects are expected to attract approximately $100 billion in investment into Venezuela’s oil sector.

The initial production target is reportedly around 1.5 million barrels per day from the 17 fields, while the agreement also includes eight new areas for future oil development.

Venezuela estimates the arrangement could eventually generate approximately $209 billion in government revenue.

American companies and capital are expected to play a major role in developing the fields, although many of the specific details surrounding financing, participating companies and the timeline for bringing production online remain unclear.

Venezuela, meanwhile, insists that the country will retain ownership and sovereignty over its natural resources.

A Dramatic Change in U.S.-Venezuela Relations

Perhaps the biggest story isn’t simply the amount of oil involved.

The agreement represents an extraordinary shift in relations between Washington and Caracas following years of sanctions, political confrontation and economic isolation.

Venezuela possesses the world’s largest proven crude oil reserves, but production has fallen dramatically from the levels the country produced during the industry’s peak years.

Rebuilding that capacity will not happen overnight.

Much of Venezuela’s oil infrastructure requires significant investment and modernization, meaning it could take years before the full impact of the agreement is seen in production or global oil prices.

The deal has also generated controversy inside Venezuela, where critics have questioned the extent of U.S. involvement in the country’s most valuable natural resource.

For supporters, however, the agreement represents an opportunity to bring billions of dollars in foreign investment back into Venezuela and potentially breathe new life into its struggling economy.

Either way, 65 billion barrels of oil and a 25-year agreement make this one of the biggest developments in Venezuela’s energy industry in years.