Trump hails "biggest oil deal in world history" with Venezuela

President Trump said Friday the U.S. has struck a deal with Venezuela to take control of oil fields with 65 billion barrels of reserves.

Why it matters: The unprecedented deal vastly increases U.S. energy security and dominance in the Western Hemisphere.

• Axios first reported the deal was in the offing Thursday.

Zoom in: The details have yet to be released, but a source familiar described the unorthodox arrangement as a type of "public-private partnership" between the U.S., private companies and Venezuela.

• "It's not a purchase. They're giving us equity. It's a type of corporate transaction where the U.S. has equity in the companies," a U.S. government source said.
• The U.S. would have access to what's called "off-take oil," a guaranteed amount of crude that would be exchanged at cost, the source said.

What they are saying: "The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!" Trump wrote on Truth Social.

• Secretary of State Marco Rubio, who spearheaded negotiations with Venezuela's interim president, Delcy Rodriguez, called the deal "a huge win for both the American and Venezuelan people."
• "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.
• Rodriguez confirmed the deal in a public statement where she lauded the Trump Administration and said the deal would mean $209 billion in additional tax revenue for Venezuela.

Between the lines: The unique arrangement would be overseen by the Pentagon's Office of Strategic Capital, which helps finance efforts that further U.S. national defense.

The intrigue: Immediately after Trump's initial announcement, administration officials disagreed on whether the deal had been finalized.

• But once Rodriguez issued her statement praising the accord, U.S. officials said it was a done deal, though more details may need to be worked out.
• "It's going to happen. It's just a question of when," a second source told Axios.