Key facts
- The U.S. government, through the Pentagon's Office of Strategic Capital, will hold a 35% equity stake in North American Blue Energy Partners.
- North American Blue Energy Partners has been granted a 100-year concession for Venezuelan oil fields with an estimated 65 billion barrels of oil.
- The U.S. will have the right to purchase 20% of the oil produced by the company at the cost of production.
- The acquired oil can be used to replenish the U.S. Strategic Petroleum Reserve.
- The State Department has been given the first right of refusal to purchase the remaining 80% of the oil.
The Trump administration has released further details regarding its oil agreement with Venezuela. Under the new terms, the Pentagon’s Office of Strategic Capital will acquire a 35 percent equity stake in North American Blue Energy Partners, a private entity that ranks as Venezuela's second-largest private oil producer. This partnership grants the U.S. government a 100-year concession over Venezuelan oil fields estimated to hold approximately 65 billion barrels of oil, representing about 21 percent of the nation's total estimated reserves.
The agreement also stipulates that the U.S. will have the right to purchase 20 percent of the oil extracted by North American Blue Energy Partners at the cost of production. This oil is designated for use in replenishing the U.S. Strategic Petroleum Reserve, which has been drawn upon by both the Trump and Biden administrations to manage fuel price volatility influenced by conflicts in Iran and Russia's invasion of Ukraine.
Furthermore, the State Department has secured the first right of refusal to purchase the remaining 80 percent of the oil produced by the company. While the administration indicated that "millions of barrels" of Venezuelan oil will be processed by U.S. refineries, specific figures or percentages were not provided.