Trump says US is taking partial control of Venezuela's vast oil reserves

Analysts said they needed to see more details on the agreement's legal and financial structure before assessing whether it could attract significant investment.

Prospects were unclear for the deal to lower gasoline prices in the short term, as developing the infrastructure needed to produce, transport and refine Venezuela's heavy crude could take years.

David Goldwyn, president of Goldwyn Global Strategies, said it was unclear whether a U.S. government lease would have a legal basis under Venezuela's constitution and new hydrocarbons law, adding that there is “no precedent for having the U.S. government enter into a lease to operate oil fields.”

Goldwyn also questioned whether the plan would address the obstacles that have deterred investment in Venezuela for years. “It is hard to see how this kind of arrangement would accelerate investment at any material scale,” he said, citing political uncertainty, an inadequate power grid, limited export capacity and government discretion over the industry.