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🇬🇷 Greece /Energy & Infrastructure

Venezuela’s oil treasure, or fool’s gold?

From Kathimerini · () Greek

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

At a glance

Analysis Official statement New plan
  • Donald Trump announced what he described as the world’s largest oil agreement, giving the United States majority control over Venezuelan oil reserves under terms disputed by Venezuela’s transitional president.
  • The White House says a Venezuelan private company secured production rights in 17 fields for 100 years, while Delcy Rodríguez described a 25-year agreement.
  • The deal promises major investment and tax revenue for Venezuela but involves a controversial business partner and significant political and infrastructure uncertainties.

Donald Trump’s announcement of the “LARGEST OIL DEAL IN WORLD HISTORY” has put Venezuela’s oil wealth back at the center of international attention. The announcement, made late on Friday, August 28, revived questions about the U.S. intervention in the country.

After what Trump called the “one-hour war”, the operation to abduct Venezuelan leader Nicolás Maduro in January, Venezuela had largely disappeared from the headlines. The exception came in June, when devastating earthquakes killed more than 6,500 people. Trump had already made clear his interest in Venezuelan oil at the memorable news conference held after the operation against Maduro.

LARGEST OIL DEAL IN WORLD HISTORY

· Donald TrumpTrump’s description of the agreement in his announcement.

Venezuela holds the world’s largest oil reserves, but decades of mismanagement and sanctions have left it ranked only 19th in production. According to Trump’s post on Truth Social, the agreement gives the United States “majority control” over 65 billion barrels, more than one-fifth of known reserves, with “no cost to the American taxpayer”.

majority control

· Donald TrumpTrump’s description of the U.S. position over Venezuelan oil reserves.

White House information says the Venezuelan private company North America Blue Energy Partners obtained production rights in 17 fields for 100 years. The U.S. Defense Department would hold a 35% stake in NABEP’s parent company, while the State Department could buy 20% of its production at cost. The United States would also have veto power over the company’s board members, most of whom would be American. A U.S. official said the agreement makes the company the second-largest holder of oil fields after Saudi Arabia’s Aramco.

Venezuela’s transitional president, Delcy Rodríguez, said the deal could attract $100 billion in investment and generate $209 billion in tax revenue for the country. But she described the agreement as lasting 25 years, not 100 years as stated by the White House. The partner, owned by businessman Alejandro Betancourt, is also controversial. Betancourt belongs to the Bolichicos, young oligarchs who built their fortunes after Chavism took power, and had recently faced restrictions in the United Kingdom while an extradition request from Switzerland was examined in a money-laundering investigation.

no cost to the American taxpayer

· Donald TrumpTrump’s claim about the financial impact of the deal on U.S. taxpayers.
About this summary

Originally published by Kathimerini in Greek. 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.

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