Pentagon Takes Unprecedented Stake in Venezuelan Oil Company

The Trump administration has announced a deal that grants the Pentagon an unprecedented 35% equity stake in North American Blue Energy Partners (NABEP), a private oil company based in Barbados. This stake gives the U.S. majority control over 65 billion barrels of Venezuela's proven crude reserves, making NABEP the second-largest oil company measured by proved reserves in the world.

The deal was made possible after the Trump administration ousted former Venezuelan President Nicolás Maduro and co-opted the remaining regime led by interim President Delcy Rodríguez. The Rodríguez government granted NABEP concessions to 17 oilfields in Venezuela for a century, with the goal of increasing production to over 1 million barrels per day.

NABEP's CEO, Alejandro Betancourt, has faced investigations into his past ventures and has been accused of money laundering and corruption. However, the Trump administration has stated that they partnered with NABEP because Betancourt is a 'good oil operator' who can bring the fields into productive capacity.

The deal also gives the State Department the right to purchase 20% of NABEP's oil output at the cost of production rather than market price, and the U.S. government has the right to veto appointments to NABEP's board of directors.