Venezuela has granted U.S.-backed North American Blue Energy Partners (NABEP) 100-year concessions for 17 oil fields, with proven reserves of about 65 billion barrels. The U.S. has about 46 billion barrels in proven oil reserves.
Venezuelan interim authorities have granted NABEP, the second-largest private oil producer in Venezuela, 100-year concessions. The company has granted the U.S. Department of War's Office of Strategic Capital a 35% equity stake in its corporate parent, representing "hundreds of billions in value for the United States."
President Donald Trump announced that this deal gives the U.S. majority control over 65 billion barrels, or about 20% of the South American nation's massive oil reserves.
The U.S. government has the right to purchase, at production cost, a guaranteed 20% of the off-take from all current and future fields NABEP will operate, as well as the "right of first refusal" to purchase the remaining 80% of NABEP's production.
However, analysts remain skeptical that this landmark oil deal could meaningfully boost U.S. energy production and bring down gas prices in the near term.
NABEP also plans to invest up to $100 billion in new oil infrastructure in Venezuela to scale production.
