DistantNews
Support us
🇵🇾 Paraguay /Energy & Infrastructure

PDVSA chief says Venezuela-US oil deal can be renewed

From ABC Color · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Named sources New plan
  • PDVSA President Héctor Obregón said an oil agreement signed with the United States is initially set for 25 years but can be renewed by mutual consent.
  • The deal involves Venezuela, the U.S. government and North American Blue Energy Partners, whose shareholder structure includes a 35% stake held by the U.S. state.
  • Venezuela says the agreement covers 17 fields and aims to produce more than 1.5 million barrels per day, while the government retains ownership and control of the oil.

Venezuela’s oil agreement with the United States is signed for 25 years, but it could be extended repeatedly for as long as necessary, according to Héctor Obregón, president of state oil company PDVSA.

“Legally, by mutual agreement, contractual renewals can take place for similar periods until reaching the appropriate duration,” Obregón said in an interview with radio station Onda La Superestación. He added that the agreement could ultimately remain in force for 100 years if that served Venezuela’s interests.

Legally, by mutual agreement, contractual renewals can take place for similar periods until reaching the appropriate duration.

· Héctor ObregónThe PDVSA president explained how the initial 25-year agreement could be extended.

The deal, reached on Aug. 28, is described by Obregón as tripartite. North American Blue Energy Partners, or NABEP, signed the contract with PDVSA, while the U.S. government holds a 35% stake in the company. The arrangement allows the United States to exploit more than 20% of Venezuela’s crude reserves.

In principle, it provides for 25 years, but it can be renewed as many times as necessary. We hope, for the well-being of Venezuela, that oil continues to be a source for 100 years.

· Héctor ObregónHe described the possible long-term duration of the agreement.

The Venezuelan government previously said the contract would last 25 years. The White House later said it had granted NABEP a 100-year concession to develop the oil. The company is linked to Venezuelan businessman Alejandro Betancourt, whom Obregón defended after criticism over past money-laundering investigations in Venezuela, the United States, Spain and Switzerland.

Obregón called the arrangement a “win-win” for both countries and said it would provide Venezuela’s public finances with royalties and tax revenue. The government says the agreement covers 17 fields containing 65 billion barrels and targets production above 1.5 million barrels per day. Oil Minister Paula Henao said Venezuela currently produces an average of 1.236 million barrels per day and expects output to reach 1.4 million by the end of 2026. In 1998, production stood at 3.1 million barrels per day.

Win-win

· Héctor ObregónHe characterized the benefits of the agreement for Venezuela and the United States.
About this summary

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

More Stories

From Our Blog