The White House on Monday unveiled the full structure of its landmark deal with North American Blue Energy Partners, revealing that the Pentagon will hold a 35 percent ownership stake in a new joint venture controlling access to Venezuela’s vast oil reserves.
The agreement, first announced by President Donald Trump on Friday, grants NABEP 100-year concessions over 17 oil fields containing an estimated 65 billion barrels of proven reserves. The U.S. government will control 55 percent of the joint venture’s total output, with the State Department securing a guarantee to purchase 20 percent of production at cost.
NABEP, owned by Venezuelan-born businessman Alejandro Betancourt, has committed to investing $100 billion in new oil infrastructure across the South American nation. The White House described the arrangement as coming at “zero cost” to American taxpayers, noting that the U.S. government would hold veto power over board appointments, with a majority of directors required to be U.S. citizens.
Betancourt already operates as the second-largest oil producer in Venezuela through existing operations. The concessions cover fields that were previously controlled by Russian and Chinese companies, effectively ending their decades-long foothold in Venezuela’s oil sector. The deal creates a new private company as part of a joint venture between the U.S. government and NABEP, with ownership split between the Pentagon, the State Department, and Betancourt’s firm.
How the Deal Works
Secretary of State Marco Rubio and Secretary of War Pete Hegseth signed the pact, which requires NABEP to maintain reputable U.S. auditors, lawyers, and advisers. The agreement is governed by U.S. law and subject to the jurisdiction of American courts, providing a legal framework that the White House said would protect American interests for the duration of the 100-year concession.
The company plans to dramatically increase production capacity from Venezuela’s Orinoco Belt and Lake Maracaibo regions, both of which have suffered years of underinvestment under the Maduro regime. Venezuela’s oil industry, which at its peak produced over 3 million barrels per day, has fallen to roughly 800,000 barrels due to infrastructure decay, sanctions, and mismanagement. The country’s oil ministry estimates that restoring production to 2 million barrels per day would require at least $50 billion in upfront capital investment.
The deal follows Trump’s capture of former President Nicolas Maduro in November 2025 on federal narcoterrorism and drug trafficking charges. Venezuela’s interim government, which took power after Maduro’s arrest, has been seeking international partnerships to revive the country’s collapsing economy, with oil accounting for roughly 95 percent of export revenue. The interim authorities have struggled to maintain basic services, and the new oil revenues are seen as essential to preventing further economic deterioration across the country.
Expert Caution and Political Risks
Former U.S. government energy advisers have warned that the deal carries significant political risk. Future administrations in both Venezuela and the United States could challenge the arrangement, particularly if political dynamics shift in either country. The 100-year concession period is unprecedented in modern energy agreements and may face legal challenges in international courts, particularly from Russian and Chinese companies that held concessions on many of the same fields.
The deal also raises questions about concentration of control in a single private entity with close ties to the Venezuelan political establishment. NABEP said it looked forward to working with the Trump administration, but some analysts have expressed concern about the lack of competitive bidding and the speed with which the arrangement was finalized. The White House did not respond to questions about whether other companies were considered for the partnership or what criteria were used to select NABEP.
For Venezuela’s interim government, the agreement represents a critical lifeline. The country’s oil infrastructure has deteriorated badly, with frequent power outages, equipment failures, and environmental damage limiting output. The promised $100 billion investment could modernize aging facilities and unlock production capacity that has been dormant for years, potentially transforming Venezuela back into a major global oil producer. Workers in the industry have expressed cautious optimism, though many remain skeptical given the country’s long history of unfulfilled promises from foreign investors.
Regional and Global Implications
The deal has drawn mixed reactions across Latin America. Neighboring countries with their own oil industries, including Brazil, Colombia, and Ecuador, are watching closely to see how increased Venezuelan production might affect regional energy markets and prices. Some analysts predict that a significant boost in Venezuelan output could put downward pressure on crude prices, benefiting consumers but challenging producers in the region who have invested in their own capacity expansions.
Critics in Congress have questioned whether the arrangement effectively amounts to a resource extraction deal that benefits private interests at the expense of Venezuelan sovereignty. Supporters counter that the investment is badly needed to rebuild a shattered economy and that U.S. oversight provisions provide adequate safeguards against exploitation.
The White House emphasized that the deal would create thousands of jobs in Venezuela while generating revenue for the U.S. government through its production stake. With global energy markets already strained by ongoing conflicts in the Middle East, including recent attacks on shipping in the Strait of Hormuz, the prospect of significantly increased Venezuelan output could provide some relief to supply concerns and help stabilize prices in the coming years. Analysts at major energy consultancies have noted that even a partial restoration of Venezuelan production could offset some of the supply disruptions caused by the Iran conflict.
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