Venezuela–US Oil Deal

As is known, on January 3, 2026, the country’s president was captured and taken to the United States following a US military operation in Venezuela. Then, on August 31, information about one of the largest oil deals in the history of the global economy was published on the White House’s official website: under an agreement reached between the US administration and Venezuela’s interim government, North American Blue Energy Partners (NABEP) was granted 100-year concessions to develop 17 oil fields with proven reserves of around 65 billion barrels.

NABEP is the second-largest private oil producer in Venezuela. According to official White House data, it transferred a 35% stake in its parent company to the US Department of Defense’s Office of Strategic Capital at no cost. This represents an asset worth hundreds of billions of dollars and provides for the payment of dividends to the United States.

NABEP has granted the US Department of State the right to purchase, at cost, 20% of total production from all current and future fields developed by the company. This guarantees a steady supply of low-cost oil that can be used to replenish the US Strategic Petroleum Reserve and meet the needs of the armed forces and other critical sectors.

In addition, NABEP has granted the US Department of State the right of first refusal to purchase the remaining 80% of the oil produced. The US government has veto power over the appointment of any member of the board of directors, and a majority of NABEP’s board members must be US citizens. The agreement between the US government and NABEP is governed by US law and falls under the jurisdiction of US courts.

As a result, millions of barrels of Venezuelan oil will be refined at US plants using American drilling equipment and infrastructure. As the US administration notes, “this will bring billions of dollars in investment into the US economy and create thousands of jobs at home.” According to official data, the United States itself has proven oil reserves of around 46 billion barrels. However, analysts have expressed doubts that this significant oil deal will lead to lower gasoline prices for Americans in the near term.

In Venezuela, NABEP’s activities under the concessions granted to it are governed by the new Venezuelan Hydrocarbons Law, adopted with US support. This law paves the way for large-scale modernization, privatization, and development of Venezuela’s struggling oil sector. Under this model, as production increases, NABEP will pay a total of around $200 billion in royalties and taxes over the first 25 years. These funds will become a vital source of revenue and financial support for Venezuela’s current and future governments, helping finance the country’s recovery and social development.

It remains to be hoped that this small South American country, caught in a difficult political and economic situation, will be able to derive real benefit from the oil deal it has signed.

Author: Candidate of Economic Sciences, Associate Professor in the Department of World Economy and International Finance at the Financial University under the Government of the Russian Federation, Natalya Vladimirovna Sergeeva.