CARACAS – Venezuela announced on Friday what it called "a historic agreement" with the US government to promote investment in the recovery and reconstruction of strategic infrastructure for its hydrocarbons industry.

In a statement, Venezuela's acting president Delcy Rodriguez said the agreement will help strengthen bilateral relations and facilitate a major flow of investment into the country's energy sector.

The agreement will allow Venezuela – which has the world's largest proven oil reserves – to significantly increase oil production with the participation of private operators, the statement said.

The agreement calls for the development of 17 strategic fields, with a proven potential of 65 billion barrels of oil, an investment of more than $100 billion and more than $209 billion in taxes for the State, it added.

In a post on Truth Social, US President Donald Trump said on Friday, "The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!"

The deal "MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future," Trump claimed.

US oil prices have risen sharply since the Iran conflict erupted in late February, triggering inflation concerns.

On Jan 3, US military forces launched a large-scale strike against Venezuela and forcibly seized Venezuelan President Nicolas Maduro and his wife before transporting them to New York.

On Jan 29, Rodriguez announced the approval of a partial reform of the country's hydrocarbons law to allow greater private participation in the oil sector.