The deal caps months of secretive negotiations to give the U.S. rights to some of the world's largest proven oil reserves. President Trump spent months declaring his ouster of Venezuela's leader had secured the country's oil for America. When U.S. energy companies resisted investing at the speed and scale he wanted, his administration devised an extraordinary solution to turn his vision into reality: make the U.S. government itself an investor.

The agreement announced Friday evening would transform the U.S. government from a broker of American oil investments in Venezuela to an investor itself. It would give Washington a direct financial stake in a private company that would be granted centurylong rights to some of the world's largest proven oil reserves—and tie the U.S. more closely to the unelected government that is granting those rights. The private company, led by controversial Venezuelan businessman Alejandro Betancourt, would have the opportunity to develop 17 oil fields said to contain 65 billion barrels of oil, or one-fifth of the country's reserves.

The Pentagon, in a striking expansion of its remit, would help finance the oil venture and reap the rewards of its future output. "If this deal can survive subsequent Venezuelan governments, then Trump will have secured strategic oil reserves for the U.S. that go beyond the shale revolution," said Schreiner Parker, a partner at consultancy Rystad Energy. The U.S. plans to take a 35% passive stake in Betancourt's North American Blue Energy Partners and would secure preferential rights to purchase 20% of its production at cost.

The deal angered many Venezuelans and sowed confusion among some oil executives and even U.S. officials over what was agreed and how the arrangement would work. Secretary of State Marco Rubio called the agreement a "huge win" that would secure low-cost oil in the Western Hemisphere and lower gas prices for Americans.