Key facts
- A 100-year oil deal has been signed between the US and Venezuela.
- The agreement grants a US-led company, North American Blue Energy Partners, concessions over 17 Venezuelan oilfields.
- The concessions cover an estimated 65 billion barrels of crude oil, representing over 20% of Venezuela's proven reserves.
- The US government will hold veto power over board appointments for the US-led company.
- The deal has been praised by President Trump and interim Venezuelan President Delcy Rodríguez but criticized by analysts and opposition figures.
President Donald Trump's administration has finalized a significant oil deal with Venezuela, granting a US-led company 100-year concessions over 17 oilfields containing an estimated 65 billion barrels of crude. The agreement, hailed by both Trump and interim Venezuelan President Delcy Rodríguez as historic and beneficial, aims to boost oil production and shift geopolitical energy dynamics away from the Middle East.
The deal, however, has ignited controversy. 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 Rodríguez of collaborating with an oppressive regime and betraying the country's interests by handing over its most valuable asset to the US without restoring democracy or holding elections.
Details of the agreement include the US government having veto power over board appointments for the US-led company, North American Blue Energy Partners (Nabep). While proponents suggest the deal will generate substantial investment and tax revenue, energy experts caution that the dire state of Venezuela's oil infrastructure means realizing profits could take a decade, rather than the two to three years projected by Trump. Past mismanagement of the country's oil wealth also raises concerns about resource allocation and oversight.