The U.S. has entered into what has been dubbed "the largest oil deal in history" with Venezuela, securing majority control over 17 oil fields that contain approximately 65 billion barrels of proven crude reserves. This represents about 21.5% of Venezuela's total proven reserves, and significantly increases U.S. reserves by 141%, potentially doubling them. The agreement, orchestrated by the Trump administration, aims to boost U.S. oil supply, reduce gasoline prices, and ensure energy security from within the Americas.
The deal involves granting North American Blue Energy Partners (NABEP) a concession to operate these oil fields for 25 years, with a production target exceeding 1.5 million barrels per day. NABEP, in turn, has given the U.S. Department of Defense's Office of Strategic Capital a 35% equity stake in its parent company at no cost to U.S. taxpayers. This arrangement also grants the U.S. a 20% right to purchase oil at production cost from all current and future NABEP fields, and a preferential right to acquire the remaining 80% at market prices. Additionally, U.S. citizens will form the majority of NABEP's board, and the U.S. government will have veto power over board appointments.
From Venezuela's perspective, the interim government, led by Delcy Rodríguez, anticipates over $100 billion in investments and approximately $209 billion in tax revenues from the deal. Based on an estimated oil price of $65 per barrel, Venezuela expects to receive about $19 per barrel, which represents around 29% of the price. While Venezuela maintains ownership and sovereignty over its resources, analysts like Luis Pacheco note that the $19 per barrel return is on the lower end compared to similar international agreements. The agreement includes developing eight greenfield blocks with minimum royalties of 16% and an income tax rate of 34%.
The agreement has drawn controversy due to concerns about transparency and Venezuela's sovereignty, particularly given the U.S. has controlled Venezuelan oil sales since January without clear accounting to the Venezuelan public. Critics initially pointed to figures suggesting Venezuela would receive only $3.3 per barrel, but Rodríguez later clarified the $19 per barrel figure. The deal also aims to displace operators linked to Nicolás Maduro who were sanctioned by the U.S., thereby dismantling a network that helped Caracas bypass sanctions. The U.S. also sees this as a way to counter Russian and Chinese influence in the region and to support Venezuela's recovery, including rebuilding infrastructure after recent earthquakes.
