Venezuelan interim authorities have granted U.S.-backed North American Blue Energy Partners, or NABEP, 100-year concessions for 17 oil fields, with proven reserves of about 65 billion barrels, the White House said on Monday.
NABEP is the second-largest private oil producer in Venezuela. The company has granted the U.S. Department of War's Office of Strategic Capital an equity stake of 35% in its corporate parent, according to the White House, representing up to "hundreds of billions in value and dividends for the United States."
President Donald Trump announced Friday a deal with Caracas that would give the U.S. majority control over 65 billion barrels, or about 20% of the South American nation's massive oil reserves. The U.S. had about 46 billion barrels in proven oil reserves as of end-2024, according to official figures.
In a fact sheet published Monday evening stateside, the U.S. government said it would enjoy the right to purchase, at production cost, a guaranteed 20% of the off-take from all current and future fields NABEP will operate, as part of an effort to facilitate refilling the U.S. strategic petroleum reserves.
The U.S. government also has the "right of first refusal" to purchase the remaining 80% of NABEP's production, making Washington the prioritized buyer for its energy reserves.
Analysts, however, remained skeptical that the landmark oil deal could meaningfully boost the U.S. energy production and bring down gas prices for Americans in the near term. Huge investments are needed to extract the rich resources in Venezuela, whose oil output remains at a fraction of its capacity due to decades of mismanagement, lack of investment and sanctions.
NABEP also planned to invest up to $100 billion in new oil infrastructure in Venezuela to scale production, the White House said. Under the agreement, the company is expected to pay $200 billion in royalty and tax payments to Venezuelan governments over the first 25 years.
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