Pentagon Secures Stake in Venezuela Oil Deal
The White House has unveiled more details about President Trump's plan to tap into Venezuela's oil industry, which was announced earlier this month. The deal involves a partnership with North American Blue Energy Partners (NABEP) and will give the Pentagon a 35% stake in the company.
NABEP is already the second-largest operator in Venezuela, behind Chevron, and has agreed to invest $100 billion in new oil infrastructure. In return, the US will get a right to purchase 20% of the output at cost, orchestrated through the State Department.
The deal was signed by Defense Secretary Pete Hegseth and Secretary of State Marco Rubio, and will give the US access to roughly a fifth of Venezuela's vast oil reserves, which are estimated at 65 billion barrels. The Venezuelan government has granted NABEP 100-year rights over 17 oil fields.
President Trump said that the deal will provide a source to help refill America's strategic oil reserves and produce asphalt and other goods, but analysts have cautioned that it could take years to turn around Venezuela's dilapidated energy sector. Critics on Capitol Hill are also expressing concerns about the deal, with some calling it an abuse of power and taxpayer dollars.