The White House announced a deal with North American Blue Energy Partners (NABEP) that will give the Pentagon a stake in Venezuela's vast oil reserves, as reported by infohub.kz.
According to the White House, the U.S. is forming a new oil company with NABEP, already the second largest operator in Venezuela, aiming to create a new oil giant. This agreement allows the U.S. access to Venezuela's substantial oil reserves.
Under the deal, the Pentagon will hold a 35% ownership stake in the new company, and the State Department will have a guarantee to purchase 20% of the output at cost. This is part of President Donald Trump's initiative to boost production and extract energy from Venezuela, nine months after the capture of then-President Nicolás Maduro on federal narcoterrorism and drug trafficking charges.
The White House stated that NABEP, owned by Alejandro Betancourt, has agreed to invest $100 billion in new oil infrastructure. The deal is claimed to be "at zero cost" to the U.S., and the government will have veto power over board members, the majority of whom will be U.S. citizens.
In a fact sheet, the White House said: "NABEP will have reputable U.S. auditors, lawyers, and advisers, and the U.S. government's agreement with NABEP is governed by U.S. law and is subject to the jurisdiction of U.S. courts."
The agreement grants the new oil company 100-year rights over 17 oil fields with proven reserves of about 65 billion barrels. Many of these fields were previously owned by Russian or Chinese companies, the White House said.
Former U.S. government energy advisers have cautioned that the deal carries political risks, as future administrations in Venezuela or the United States could challenge it.