The Trump administration has finalized a deal to establish North American Blue Energy Partners (NABEP), a new oil company with a direct financial stake from the Pentagon, to operate in Venezuela. This agreement transforms the U.S. government from a broker into an investor in Venezuelan oil, granting NABEP century-long rights to 17 oil fields containing an estimated 65 billion barrels of oil, which represents about one-fifth of Venezuela’s total proven reserves. The Pentagon, through its Office of Strategic Capital, will receive a 35% equity stake in NABEP at no cost, allowing the U.S. to reap the rewards of future oil output. This move is a significant expansion of the Pentagon's role and ties the U.S. more closely to Venezuela's unelected government.
The deal positions NABEP to potentially become the second-largest oil company globally by proved reserves, trailing only Saudi Aramco and significantly outstripping Exxon's reserves by approximately four times, according to Patrick Rutty of Enverus. Beyond the equity stake, the U.S. State Department has the right to purchase 20% of NABEP's oil output at cost, along with a right of first refusal for the remaining 80%. The U.S. government also gains substantial control through the ability to veto board appointments and the requirement that a majority of board members be U.S. citizens, with the entire deal governed by U.S. law.
Controversial Venezuelan businessman Alejandro Betancourt leads NABEP, which has stated goals of bringing nearly $100 billion in investment to Venezuela's oil sector and increasing its production to over 1 million barrels per day. The White House anticipates that oil purchased under favorable terms will help replenish the Strategic Petroleum Reserve and secure supplies for military and other critical uses. While Energy Secretary Chris Wright emphasized that the U.S. government would not be an operator, the deal effectively creates a state-owned enterprise with de facto control over Venezuelan oil output, according to trade law expert Scott Lincicome. Chevron, the only other U.S. oil major active in Venezuela, separately announced a $7 billion investment to double its production to 600,000 barrels per day by 2031, demonstrating continued private sector interest despite the new government-backed venture.
