Pentagon Secures Stake in Venezuelan Oil Reserves Through Joint Venture

The White House has revealed more details about President Donald Trump's plan to tap into Venezuela's oil industry. The deal, announced earlier this week, will give the Pentagon a stake in roughly a fifth of the country's vast oil reserves through a joint venture with North American Blue Energy Partners (NABEP).

NABEP, owned by Venezuelan businessman Alejandro Betancourt, is already the second-largest operator in Venezuela behind Chevron. The deal will grant NABEP 100-year rights over 17 oil fields with proven reserves of 65 billion barrels, many of which were previously owned by Russian or Chinese firms.

The U.S. government will have a 35% ownership stake in the company through the Pentagon, and the State Department has secured a guarantee to purchase 20% of the output at cost. Betancourt's company has agreed to invest $100 billion in new oil infrastructure.

The White House claims the deal will be 'at zero cost' to the U.S., with the government having veto power over board members, most of whom would be U.S. citizens. However, former energy advisers have cautioned that the deal comes with significant political risk, as future administrations in Venezuela or the U.S. could challenge the agreement.