Key facts
- NABEP aims to quadruple oil output to over 1 million barrels per day from current levels of about 224,000 bpd.
- Industry insiders cite debt, hiring challenges, and dilapidated infrastructure as major obstacles for NABEP.
- Only about 10 billion barrels of Venezuela's 64 billion barrel reserves are considered realistically developable within 25 years.
- NABEP's leader, Alejandro Betancourt, was previously a target of US money-laundering investigations.
- The deal grants the US a 35% stake in NABEP's parent company and the right to buy 20% of output at production cost.
A significant oil deal between the US and Venezuela, championed by President Donald Trump, is facing considerable skepticism from industry experts regarding its feasibility. The agreement grants North American Blue Energy Partners (NABEP), a firm led by Venezuelan businessman Alejandro Betancourt, control over 17 oilfields with vast reserves. NABEP aims to dramatically increase production, but sources cited by Reuters point to challenges including debt, infrastructure decay, and difficulty in hiring skilled labor. Betancourt himself has been subject to money-laundering investigations, though he has never been charged with a crime. Despite these hurdles, NABEP asserts it is on track for a 'renaissance' in Venezuelan oil production, with the US government confirming that production is growing and the deal is delivering results.