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The White House has tied up with NABEP to create a US-backed venture over Venezuelan oil fields. The pact gives the Pentagon a major stake and raises questions over political risk and output recovery.
Washington,UPDATED: Sep 1, 2026 08:04 IST
The White House said on Monday that it is partnering with North American Blue Energy Partners as part of President Donald Trump's push to tap Venezuela's oil industry, in a deal that would give the Pentagon a stake linked to roughly a fifth of the country's oil reserves.
The Trump administration released more details of the agreement days after Trump called it the biggest oil deal in history. While analysts have expressed scepticism and said it could take years to revive Venezuela's production, Trump and his aides have presented it as an opportunity to build a major oil producer in the Western Hemisphere.
Under the deal, the US is creating a private company in a joint venture with NABEP, a detail the White House had not disclosed for days. NABEP, owned by Venezuelan businessman Alejandro Betancourt, is already the second-largest operator in Venezuela after Chevron. Venezuela's acting President Delcy Rodrguez is giving the company 100-year rights over 17 oil fields with proven reserves of 65 billion barrels. The White House said many of these fields were previously owned by Russian or Chinese firms.
The White House also said the Pentagon will get a 35 per cent ownership stake in the company, while the State Department will receive a guarantee to buy 20 per cent of the output at cost. According to the administration, Betancourt's company has agreed to invest USD 100 billion in new oil infrastructure. Trump has been pushing to raise oil production in Venezuela since the January military mission that captured then-President Nicols Maduro on federal narcoterrorism and drug trafficking charges.
The White House said the deal would be "at zero cost" to the US and added that the government would have veto power over board members, most of whom would be US citizens. "NABEP will have reputable US auditors, lawyers, and advisers and the US government's agreement with NABEP is governed by US law and is subject to the jurisdiction of US courts," the White House said in a fact sheet. Former US government energy advisers have warned that the agreement carries political risk, as future administrations in Venezuela or the United States could challenge it. Overall, the deal combines a major long-term oil rights agreement, a US government stake and promised private investment, even as questions remain over how quickly Venezuela's oil output can recover.
With PTI Inputs
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Published By:
India Today Web Desk
Published On:
Sep 1, 2026 08:04 IST
