White House details Venezuela oil deal giving Pentagon 35% stake in NABEP
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The White House disclosed that the Pentagon will hold a 35% stake in North American Blue Energy Partners (NABEP), a private joint venture with Venezuelan businessman Alejandro Betancourt, under a deal granting 100-year rights to 17 Venezuelan oil fields. The agreement, signed by Defense Secretary Pete Hegseth and Secretary of State Marco Rubio, guarantees the U.S. the right to buy 20% of output at cost and includes $100 billion in infrastructure investment. The deal displaces Russian and Chinese operators from fields holding 65 billion barrels of proven reserves.
Key Facts
- The Pentagon's Office of Strategic Capital will hold a 35% ownership stake in NABEP under the deal.
- The U.S. is guaranteed the right to buy 20% of NABEP's output at cost through the State Department.
- NABEP has agreed to invest $100 billion in new oil infrastructure in Venezuela.
- Venezuela's acting President Delcy Rodriguez is granting NABEP 100-year rights over 17 oil fields with proven reserves of 65 billion barrels.
- The fields were previously operated by Russian and Chinese firms, including Roszarubezhneft, Sinopec, and China National Petroleum Corp.
Deal Structure
The White House fact sheet released late Monday describes a private joint venture between the U.S. government and North American Blue Energy Partners (NABEP), owned by Venezuelan businessman Alejandro Betancourt. The Pentagon's Office of Strategic Capital will receive a 35% ownership stake in NABEP, while the State Department secures the right to purchase 20% of output at cost. The federal government also holds a right of first refusal for the remaining 80% of NABEP's production from Venezuelan fields. Defense Secretary Pete Hegseth and Secretary of State Marco Rubio signed the agreement, which the White House said secures "our energy dominance for the next century."
Field Transfers
Venezuela's acting President Delcy Rodriguez is granting NABEP 100-year rights over 17 oil fields with proven reserves of 65 billion barrels. The White House stated that the majority of these fields were previously controlled or operated by Russian and Chinese firms, or by corrupt cronies of former presidents Maduro and Chavez. Reuters reported that the fields were previously operated by Chinese companies Sinopec and China National Petroleum Corp., as well as Russia's state-owned Roszarubezhneft, which managed joint ventures with PDVSA. NABEP is already the second-largest operator in Venezuela, behind Chevron.
Investment and Timeline
Betancourt's company has agreed to invest $100 billion in new oil infrastructure in Venezuela. The White House said the plan will "rapidly scale production" and support thousands of high-paying jobs in Venezuela. President Trump acknowledged on Monday that U.S. consumers would not immediately see a change in petrol prices, saying "it could be a little bit" for prices to fall. Some analysts have expressed scepticism, saying it will take years to revive Venezuela's production.
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