The US Government, under President Donald Trump, has reached an agreement to secure majority control over approximately 65 billion barrels (bbbl) of proven oil reserves in Venezuela, following arrangements with interim Venezuelan authorities.
The deal was finalised through concessions granted to North American Blue Energy Partners (NABEP), a privately held oil company and Venezuela’s second-largest private producer.
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The agreement was formalised by Secretary of State Marco Rubio and Secretary of War Pete Hegseth.
The deal increases US access to oil reserves, which currently total approximately 46bbbl within US territory.
Under the agreement, NABEP has been granted 100-year concessions to operate 17 oilfields in Venezuela, with combined proven reserves estimated at 65bbbl.
As part of the arrangement, NABEP has granted the US Department of War’s Office of Strategic Capital a 35% equity stake in its corporate parent at no cost to the US taxpayer.
In addition, the US Department of State has the right to purchase 20% of the offtake from NABEP-controlled fields at production cost, a measure intended to help replenish the US Strategic Petroleum Reserve and support other critical uses.
The remaining 80% of oil output is also subject to US right of first refusal in emergencies.
Governance provisions include US Government veto rights over board appointments at NABEP, with the requirement that a majority of directors be US citizens.
The agreement stipulates oversight by US auditors and lawyers and is subject to US legal jurisdiction.
Plans outlined by NABEP include up to $100bn (79.54tn bolivars) in investment to scale up oil production and infrastructure in Venezuela.
The company expects to generate $200bn in royalty and tax payments to Venezuelan governments over the initial 25 years of the concessions.
Most of the oilfields involved were previously operated by Russian and Chinese companies, or by entities aligned with earlier Venezuelan administrations.
New Venezuelan oil production is expected to be refined in the US and extracted using US equipment and infrastructure. This is expected to support substantial investment within the US and create thousands of domestic jobs.
