Key facts
- The US has secured a 100-year oil deal with Venezuela, granting North American Blue Energy Partners concessions over 17 oilfields.
- The deal covers an estimated 65 billion barrels of crude oil, representing approximately one-fifth of Venezuela's proven reserves.
- US officials argue the agreement will stabilize Venezuela and provide strategic crude reserves, while critics decry it as a betrayal of national interests.
- The pact was supported by Venezuela's national assembly and interim President Delcy Rodríguez but criticized by opposition figures and analysts.
- The deal's urgency is linked to soaring fuel prices following the US-Iran conflict and the closure of the Strait of Hormuz.
The Trump administration has finalized a significant oil deal with Venezuela, granting the US-backed North American Blue Energy Partners (Nabep) 100-year concessions over 17 oilfields. These fields are estimated to contain 65 billion barrels of crude oil, representing approximately one-fifth of Venezuela's proven reserves. US officials defended the agreement, arguing it would help stabilize the country, rebuild democracy, and provide Washington with vital access to strategic crude reserves. They stated that allowing Nabep to take over the fields would generate capital to rapidly increase production and generate royalty revenue for the government.
However, the pact has sparked considerable controversy and outrage among Venezuela's opposition. Critics, including former US envoy Elliott Abrams, have labeled it a "terrible deal" that "gives away 20% of the national patrimony" and resembles "colonialism." Venezuelan opposition figures and economists have condemned the agreement, accusing interim President Delcy Rodríguez of collaborating with an oppressive regime and betraying the country's interests by handing over its most valuable asset without restoring democracy or holding elections.
The deal's urgency has been amplified by the US-Iran conflict, which has led to soaring fuel prices after Iran retaliated by closing the Strait of Hormuz, a crucial passageway for 20% of global oil supplies. The rising petrol prices have impacted the broader economy and contributed to a decline in President Trump's popularity.