The United States has finalized a significant oil deal with Venezuela, granting a U.S.-led company a 100-year concession over 17 oilfields, which contain an estimated 65 billion barrels of crude — more than a fifth of Venezuela's proven oil reserves. This agreement, described by President Trump as "the biggest oil deal in world history," involves North American Blue Energy Partners (NABEP) receiving the 100-year lease. The U.S. government will hold a 35% equity stake in NABEP's parent company, receive a guaranteed 20% of the oil production, and retain a right-of-first-refusal to purchase the remaining output.
While the deal was presented as a victory by the Trump administration to lower gasoline prices and replenish reserves, its immediate impact and the $100 billion in expected investment are being questioned by analysts. NABEP, now controlled by Venezuelan businessman Alejandro Betancourt, is not large enough to finance such an investment independently. Major oil companies, including ExxonMobil and ConocoPhillips, have shown caution, and some are hesitant to be associated with Betancourt, according to sources. Experts like Francisco Monaldi from Rice University highlighted that many of the 17 fields lack proper infrastructure and that some reserves are not properly proven.
The White House indicated that the deal aims to give producers more confidence, especially as Trump expressed frustration with the slow pace of private oil companies in boosting Venezuelan production. However, Bloomberg Intelligence analysts Vincent Piazza and Justin Teresi noted limited appetite among U.S. energy majors for large-scale capital deployment in Venezuela due to unresolved claims and investor anxiety. Despite this, other oil and gas agreements are being pursued, with U.S. Energy Secretary Chris Wright expected to showcase additional deals involving companies like Chevron Corp., GeoPark Ltd., Hunt Oil Co., Repsol, Eni SpA, Shell Plc, and BP Plc.
