Key facts
- President Donald Trump announced a deal securing U.S. majority control of over 65 billion barrels of Venezuelan oil reserves.
- The agreement was signed by Secretary of State Marco Rubio and Secretary of War Pete Hegseth.
- A private company, NABEP, received 100-year concessions for 17 oil fields and granted the U.S. a 35% equity stake.
- The U.S. Department of State secured guaranteed low-cost off-take of 20% of production.
- The deal aims to increase U.S. oil supply, lower gas prices, and support Venezuela's economic recovery.
- NABEP plans to invest up to $100 billion in Venezuelan oil infrastructure.
President Donald Trump announced a landmark oil agreement with Venezuela, which he stated will more than double U.S. oil reserves and significantly increase supply, leading to lower gas prices. The deal grants the U.S. majority control over more than 65 billion barrels of proven oil reserves in Venezuela.
Under the agreement, Secretary of State Marco Rubio and Secretary of War Pete Hegseth, working with Venezuela's Interim President Delcy Rodriguez and private business, secured this control at no cost to the American taxpayer. North American Blue Energy Partners (NABEP), a private Venezuelan oil producer, has been granted 100-year concessions for 17 oil fields with approximately 65 billion barrels in proven reserves.
NABEP has provided the U.S. Department of War’s Office of Strategic Capital with a 35% equity stake in its corporate parent, valued at hundreds of billions of dollars. Additionally, the U.S. Department of State has secured the right to purchase 20% of NABEP's production at cost, ensuring a stable supply of low-cost oil for the Strategic Petroleum Reserve and military use. The U.S. government also holds a right of first refusal on the remaining 80% of production.
The U.S. government will have veto power over board appointments, and a majority of NABEP's board must be U.S. citizens. The agreement is governed by U.S. law and subject to U.S. court jurisdiction. NABEP plans to invest up to $100 billion in new oil infrastructure in Venezuela, creating thousands of jobs and driving economic growth. The company is also expected to pay approximately $200 billion in royalties and taxes over the first 25 years, providing crucial revenue for Venezuela's reconstruction and social development.
Venezuelan Interim President Delcy Rodriguez stated that the agreement aims to consolidate the nation's position as an energy-producing power, utilizing its reserves for national development and the well-being of its people. The deal is framed as a key step in the Trump Administration's plan for Venezuela's stabilization, reconstruction, and democratic transition.