The White House said a Venezuela Oil Agreement would give the U.S. government a 35% equity stake, governance rights, and preferential oil purchase arrangements tied to private-sector concessions covering about 65 billion barrels of proven reserves.
According to a White House fact sheet, North American Blue Energy Partners, or NABEP, received 100-year concessions for 17 Venezuelan oil fields. The privately held company would grant the Department of War’s Office of Strategic Capital a 35% stake in its corporate parent at no cost to U.S. taxpayers, the administration said.
Venezuela Oil Agreement Sets Off-Take and Board Terms
The Department of State would have the right to buy 20% of NABEP’s current and future production at production cost, with a right of first refusal on the remaining 80%, the fact sheet said. The administration said the arrangement could support refilling the Strategic Petroleum Reserve and supply military and other sensitive uses.
The White House said the U.S. government would have veto authority over board appointments and that a majority of NABEP directors must be U.S. citizens. NABEP would use U.S. auditors, lawyers, and advisers, while the government’s agreement with the company would be governed by U.S. law and subject to U.S. courts, it said.
The administration said NABEP plans to invest up to $100 billion in Venezuelan oil infrastructure and expects to make about $200 billion in royalty and tax payments over its first 25 years as output scales. It also said millions of barrels of additional Venezuelan production would be processed through U.S. refineries. The White House characterized the Venezuela Oil Agreement as part of a broader effort to rebuild Venezuela’s oil sector and reduce the role of Russian and Chinese firms in fields covered by the concessions.
