US energy firms significantly expand operations in Venezuela after Washington's oil deal with Caracas

US energy firms signed a series of multi-billion-dollar deals with Venezuela on Wednesday, days after the South American country agreed to grant Washington control of a huge chunk, roughly one-fifth, of its vast oil reserves.

US Energy Secretary Chris Wright travelled to Venezuela’s capital Caracas to oversee the signing of deals worth "tens of billions of dollars of investment," seen as a quid pro quo for Washington winning majority control of 65 billion barrels of Venezuelan oil reserves.

Wright said the deals signed by Venezuela with US oil major Chevron, GE Vernova – a General Electric offshoot – and Italy's ENI were "critical in starting this ball rolling of peace, opportunity, and prosperity" in the country.

US President Donald Trump has talked up the agreement on Venezuela's oil reserves as the "biggest oil deal in world history."

It comes as US Republicans brace for possible losses in November midterm elections due to spiralling fuel costs brought on by his war against Iran, and a broader national affordability crisis in housing, food, utilities and other basic needs.

But the deals have raised major questions about Venezuela's sovereignty. Critics in both the US and Venezuela accuse Trump of holding the country for ransom after ousting former president Nicolas Maduro in a raid and warning that Rodriguez could face a similar fate if she doesn't fall into line with Washington's demands.

The US was not "stealing Venezuelan oil," Wright insisted. "All we're doing is taking an idle, underground asset that isn't doing anything for Venezuelan people and bringing the money, the technology to develop it.”

Interim President Delcy Rodriguez earlier denied she was surrendering her country's riches, saying that cutting the US in on Venezuela's oil wealth is necessary to secure investment in the oil sector.