The two governments have made few details available about how the arrangement would work, and have yet to explain where the new investment would come from.

The deal would more than double US oil reserves at a time when the US strategic petroleum reserve is at a 40-year low, said news site Axios.

Pact with Caracas would bolster US oil supplies for years to come, but may face legal challenges.

US president says US will have ‘majority’ control of 65bn barrels of proven oil reserves