Key facts
- Venezuela's National Assembly has approved an oil deal with the U.S.
- U.S. firm NABEP will take over Venezuelan oilfields previously operated by Chinese and Russian companies.
- The U.S. government will hold a 35% equity stake in NABEP's corporate parent and receive 20% of its oil production.
- NABEP plans to invest up to $100 billion in new oil infrastructure in Venezuela.
- Venezuelan businessman Alejandro Betancourt controls NABEP and has faced investigations by U.S. and European authorities.
- Some major oil companies are hesitant to invest due to concerns about Betancourt's involvement.
Venezuela's ruling party-dominated National Assembly has approved a significant oil deal with the U.S., allowing the private firm North American Blue Energy Partners (NABEP) to take over 17 oilfields previously operated by Chinese and Russian companies. The U.S. government will secure a 35% equity stake in NABEP's corporate parent and a guaranteed 20% of its oil production, with NABEP planning to invest up to $100 billion in new infrastructure. This unprecedented arrangement grants the U.S. access to approximately 65 billion barrels of oil reserves.
However, the deal faces hesitation from some major oil companies due to concerns surrounding NABEP's controller, Venezuelan businessman Alejandro Betancourt, who has been investigated by U.S. and European authorities. While Betancourt stated the transaction will benefit both nations and aims to scale production to over 1 million barrels per day, companies like ExxonMobil and ConocoPhillips are cautious without greater legal certainty. The U.S. government's equity stake also raises potential competition issues for other American oil firms.
Separately, Chevron, Eni, ONGC, GeoPark, and GE Vernova are proceeding with their own energy project agreements in Venezuela, while Shell and BP have secured licenses for offshore gas projects. U.S. Energy Secretary Chris Wright is scheduled to travel to Venezuela to finalize an agreement.