White House outlines Venezuela oil concession deal involving North American Blue Energy Partners

The White House said a new agreement will let a private company, North American Blue Energy Partners (NABEP), operate 17 Venezuelan oil fields that hold an estimated 65 billion barrels, roughly one-fifth of the country’s proven reserves. Under the terms, the U.S. Defense Department will receive a 35% ownership interest in NABEP, while the State Department will have the right to buy 20% of the company’s output at production cost and a right of first refusal on the remainder.

NABEP, led by Venezuelan executive Alejandro Betancourt, describes itself as the nation’s second-largest private oil producer, currently pumping more than 200,000 barrels per day. The firm said it aims to raise daily production to over one million barrels in the near term.

"Venezuela is blessed with an abundance of natural resources, hardworking people and untapped potential," Betancourt said, thanking President Trump and interim Venezuelan President Delcy Rodríguez.

Rodríguez told a weekend audience that the goal is to exceed 1.5 million barrels per day within a 25-year framework.

The White House added that NABEP plans to invest up to $100 billion in new oil infrastructure in Venezuela and that the arrangement will cost U.S. taxpayers nothing. The administration argues the deal will increase U.S. oil supplies, lower energy prices and help replenish the Strategic Petroleum Reserve.

Industry analysts note that the heavy, sour nature of Venezuelan crude and the need to rebuild the country’s aging infrastructure could delay any impact on U.S. gasoline prices for many years. Some U.S. and Venezuelan politicians have criticized the agreement, with Democratic Sen. Jack Reed calling the Pentagon’s involvement “a blatant abuse of power and taxpayer dollars.”