Trump-Backed Private Company Takes Control of Venezuela's Massive Oil Reserves

The Trump administration has made a significant move in the energy sector by granting a private company control over Venezuela's largest oil reserves for 100 years.

The company, North American Blue Energy Partners (NABEP), will operate 17 oil fields containing approximately 65 billion barrels of proven reserves, making it an enormous resource base.

NABEP is not publicly traded, which means there is no stock for investors to buy and no quarterly earnings report to dissect. However, the company has Venezuelan operating experience, local connections, and a established position in the country's oil industry, making it an attractive choice for Washington.

The U.S. government receives a 35% equity stake in NABEP's corporate parent at no cost to taxpayers, along with the right to purchase 20% of all current and future production at production cost. The government also has veto power over NABEP board appointments and can appoint a majority of directors as long as they are U.S. citizens.

NABEP plans to invest up to $100 billion in Venezuelan oil infrastructure, which is expected to take years to become productive assets. Venezuela expects to receive roughly $200 billion in royalties and taxes during the first 25 years as production expands.