The White House has granted a 100-year concession to North American Blue Energy Partners to exploit oil in Venezuela. The agreement includes drilling in 17 fields that hold 65 billion barrels of crude oil.
The company North American Blue Energy Partners (NABEP) has received a 100-year concession for oil exploitation in Venezuela, according to the White House. This agreement will allow NABEP to drill in 17 oil fields that contain approximately 65 billion barrels of crude oil, which represents nearly one-fifth of the country's reserves.
According to the pact, the United States Department of Defense will hold a 35% stake in NABEP's parent company. Additionally, the Department of State will be able to acquire 20% of the extracted oil at production cost to supply U.S. strategic reserves.
Led by entrepreneur Alejandro Betancourt, NABEP is the second-largest crude producer in Venezuela, with a daily production exceeding 200,000 barrels. The company has announced that, thanks to this agreement, it plans to increase its production to over one million barrels per day.
The concession, described as “historic” by the Donald Trump Administration, also implies that NABEP will invest nearly 100 billion dollars to improve oil infrastructure in Venezuela and will pay around 200 billion dollars in taxes over the next 25 years. Furthermore, the U.S. government will have veto rights over appointments to NABEP's board of directors.
Since the capture and ousting of President Nicolás Maduro in January, the United States has restored diplomatic relations with the new government of Delcy Rodríguez. However, the agreement has drawn criticism from those who believe that the Trump Administration is not genuinely seeking a democratic transition in Venezuela.
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