The White House has confirmed a partnership with North American Blue Energy Partners that will give the Pentagon a 35 per cent stake in a company holding rights to a substantial share of Venezuela’s oil reserves.
The agreement, signed by US Secretary of State Marco Rubio and Defence Secretary Pete Hegseth, covers 17 oil fields with proven reserves of about 65 billion barrels, according to details released by the White House.
Venezuela’s interim authorities have granted North American Blue Energy Partners, known as NABEP, concessions lasting 100 years. The company is controlled by Venezuelan businessman Alejandro Betancourt and is described by Washington as the country’s second-largest private oil producer.
Under the arrangement, the Pentagon’s Office of Strategic Capital will receive a 35 per cent equity interest in NABEP’s corporate parent. The White House said the stake could ultimately be worth hundreds of billions of dollars and generate dividends for the United States, despite involving no direct cost to American taxpayers.
The US Department of State will also have the right to buy 20 per cent of NABEP’s output at production cost, while retaining the right of first refusal on the remaining 80 per cent. Washington will have veto powers over board appointments, and most board members must be US citizens.
NABEP has pledged to invest up to $100 billion in new infrastructure to expand production in Venezuela, where years of underinvestment and mismanagement have left many oil fields producing below capacity or not operating at all.
Some of the fields covered by the agreement were previously operated by Chinese companies and a Russian firm, according to US officials cited by Reuters. The deal is expected to shift a greater share of Venezuela’s oil production towards the US market and away from Chinese buyers.
Mr Betancourt said Venezuela had “an abundance of natural resources, hardworking people and untapped potential”, adding that the transaction would benefit Venezuelans and Americans.
President Donald Trump has presented the agreement as a way to strengthen US energy security, support the rebuilding of Venezuela’s oil industry and help replenish America’s strategic petroleum reserves.
However, energy advisers have warned that the deal faces political and legal risks. Future governments in Venezuela or the United States could challenge the arrangements, while analysts say it may take years and substantial investment before Venezuela’s ageing oil infrastructure can deliver significantly higher output.
