Pentagon Taps into Venezuelan Oil Reserves with $100B Investment

The White House has revealed more details about the deal announced by President Donald Trump to tap into Venezuela's oil reserves. The agreement, which was signed by Defense Secretary Pete Hegseth and Secretary of State Marco Rubio, gives the Pentagon a 35% stake in a private company called North American Blue Energy Partners (NABEP). This company will have rights over 17 oil fields with proven reserves of 65 billion barrels.

NABEP is already the second-largest operator in Venezuela, behind Chevron. The deal was met with skepticism by analysts who say it will take years to revive Venezuela's production. However, Trump and his aides are pitching it as a chance to develop a new oil giant in the Western Hemisphere.

The U.S. government will also be guaranteed a right to purchase 20% of the output at cost, orchestrated through the State Department. Betancourt's company has agreed to put up $100 billion in new oil infrastructure investments.