White House details joint venture with Venezuelan oil firm, giving Pentagon a stake in reserves
The Trump administration announced a partnership with North American Blue Energy Partners, granting the Pentagon a 35% share in a new company that will manage 17 Venezuelan oil fields for up to 100 years.
The White House disclosed on Monday that the United States will form a joint venture with North American Blue Energy Partners (NABEP), a company owned by Venezuelan businessman Alejandro Betancourt, to develop a portion of Venezuela’s oil reserves. Under the agreement, the Pentagon’s Office of Strategic Capital will hold a 35% ownership interest, while the U.S. government will have the right to purchase 20% of the output at cost through the State Department.
Acting Venezuelan President Delcy Rodríguez granted the venture 100-year rights to 17 oil fields containing an estimated 65 billion barrels of proven reserves, many previously controlled by Russian or Chinese firms. Betancourt said the partnership would “unleash” the country’s natural-resource potential for the benefit of both Venezuelans and Americans.
The deal, signed by Defense Secretary Pete Hegseth and Secretary of State Marco Rubio, requires Betancourt’s company to invest $100 billion in new oil-infrastructure projects. The White House said the arrangement would be governed by U.S. law, with U.S. auditors, lawyers and advisers overseeing operations, and that the U.S. would retain veto power over board appointments, most of which would be U.S. citizens.
Congressional leaders requested further details. Republican Rep. Rick Crawford said he hopes to receive more information soon, while Democrat Sen. Jack Reed called the use of the military in a private oil venture “an abuse of power and taxpayer dollars” and asked for a full legal justification.
President Trump acknowledged that any impact on gasoline prices would not be immediate, noting that a two-year horizon would be “a short period of time.” He added that the agreement could help replenish strategic petroleum reserves and supply heavy-oil products such as asphalt. The announcement came ahead of a meeting with oil refiners and senior officials to discuss expanding U.S. refining capacity amid rising fuel costs.