White House details terms of historic oil deal with Venezuela

The White House has presented its oil agreement with Venezuela as a strategic alliance that would expand U.S. energy influence while rebuilding Venezuela’s oil infrastructure.

A fact sheet published by Donald Trump’s administration says the United States secured rights and majority control over more than 65 billion barrels of Venezuela’s proven reserves. That figure exceeds the roughly 46 billion barrels of proven territorial reserves estimated for the United States.

The agreement, signed by Secretary of State Marco Rubio and Secretary of War Pete Hegseth, gives Washington governance rights, economic ownership and guaranteed low-cost supplies from a new private Venezuelan oil company. The White House says the company would become the world’s second-largest private oil producer by reserves.

Venezuela granted North American Blue Energy Partners, or NABEP, concessions lasting 100 years to operate 17 oil fields. Washington says the company plans to invest up to $100 billion in new oil infrastructure. The agreement also assigns a 35% stake in NABEP’s parent company to the Defense Department’s Office of Strategic Capital. The White House projects that the stake could generate hundreds of billions of dollars in dividends for Washington without taxpayer costs.

The State Department would have the right to buy 20% of the company’s current and future production at cost. It would also hold a first-option right over the remaining 80% during energy emergencies. Washington would have veto power over NABEP board appointments, and most board members would have to be U.S. citizens. The agreement would operate exclusively under U.S. law and courts.

The plan directs Venezuelan crude to U.S. refineries using American platforms and engineering, with the stated aim of supporting domestic employment and investment. Venezuela, whose economy relies heavily on oil, is projected to receive about $200 billion in royalties and taxes from NABEP.

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The agreement, signed by Secretary of State Marco Rubio and Secretary of War Pete Hegseth, grants the U.S. government powerful governance rights, economic ownership and guaranteed low-cost supplies from a new Venezuelan private oil company, which will become the second-largest private oil company in the world by reserves.