North American Blue Energy Partners (NABEP), an oil driller supported by the Trump administration, is targeting a 150% increase in crude output in Venezuela by the end of 2028. The company plans to boost production from its current 200,000 barrels per day to 500,000 barrels per day. This expansion has thus far been financed through internal cash flow, though NABEP indicated that external investment could accelerate this growth.
This aggressive expansion follows a deal described by President Trump as potentially "the biggest oil deal in world history," which effectively gives the US control over a large portion of Venezuela's oil wealth. The agreement aims to more than double US reserves and secure energy dominance for the next century at no direct cost to the US. Under the deal, NABEP, headquartered in Barbados and led by Alejandro Betancourt, received concessions to 17 oilfields in Venezuela for a century, encompassing 65 billion barrels of proved reserves, making it the second-largest oil company globally by proved reserves.
The deal includes a significant equity stake for the US government. The Pentagon's Office of Strategic Capital received a 35% equity stake in NABEP at no cost, and the State Department has the right to purchase 20% of NABEP's output at cost price. The US also holds a right of first refusal for the remaining 80% of production. This arrangement allows the US government to veto appointments to NABEP's board and requires a majority of board members to be US citizens, operating under US law and jurisdiction. The White House states that the oil acquired under favorable terms will help replenish the Strategic Petroleum Reserve and fulfill military and other sensitive needs.
Despite the administration's claims of securing energy dominance, the deal has raised concerns among US energy companies and analysts. The US government's direct involvement in an oil company, particularly in a foreign nation, is unprecedented, leading some experts like Tyler Priest, an oil industry historian, to flag it as high-risk due to the controversial nature of NABEP's CEO and Venezuela's history of corruption. The deal also faces potential long-term viability challenges, with some suggesting it could be reconsidered or terminated by a different US presidential administration or a future Venezuelan regime.
