White House details partnership with North American Blue Energy Partners for Venezuela oil fields
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The Trump administration announced a joint venture with North American Blue Energy Partners that gives the Pentagon a 35% stake in a company operating 17 Venezuelan oil fields, while lawmakers seek further clarification.
The White House disclosed on Monday that it is forming a joint venture with North American Blue Energy Partners (NABEP) to develop 17 oil fields in Venezuela, granting the Pentagon’s Office of Strategic Capital a 35% ownership share. The fields, which hold an estimated 65 billion barrels of proven reserves, will be operated by NABEP, a company owned by Venezuelan businessman Alejandro Betancourt and the second-largest oil operator in the country after Chevron.
Acting Venezuelan President Delcy Rodríguez authorized a 100-year lease for the fields, many previously controlled by Russian or Chinese firms. Under the agreement, the U.S. government will have the right to purchase 20% of the oil output at cost through the State Department, and the Pentagon will hold veto power over board appointments, most of which are to be U.S. citizens.
Betancourt said the partnership will unlock Venezuela’s natural-resource potential and benefit both nations, noting that his company employs more than 5,000 staff and contractors and will invest $100 billion in new oil-infrastructure projects. The deal was signed by Defense Secretary Pete Hegseth and Secretary of State Marco Rubio.
Critics warned of political risk and the long timeline needed to revive Venezuela’s oil sector. Former energy advisers and members of Congress expressed concerns about the use of military resources for a private venture and requested a detailed legal justification. Rep. Rick Crawford and Sen. Jack Reed both called for additional information, with Reed describing the arrangement as an “abuse of power and taxpayer dollars.”
President Trump acknowledged that any impact on U.S. gasoline prices would not be immediate, suggesting a two-year horizon for potential benefits. He also said the agreement would help replenish strategic petroleum reserves and provide heavy oil for products such as asphalt.
The announcement precedes a meeting with oil refiners and senior officials, including Interior Secretary Doug Burgum and Energy Secretary Chris Wright, to discuss expanding refining capacity amid rising fuel prices linked to the conflict in Iran.