US Bets Big on Venezuela's Oil Reserves with Century-Long Concession

The US has made a massive bet on Venezuela's oil reserves through the North American Blue Energy Partners (NABEP) agreement, which grants Washington an extraordinary stake in nearly 65 billion barrels of proven reserves over a century-long concession. This deal, touted by Trump as the 'biggest oil deal in world history,' allows for a potential 35% US government equity stake and 20% of production at cost, with first-refusal rights on the rest.

The agreement covers 17 Venezuelan oilfields and nearly one-fifth of Venezuela's total reserves. However, recent production is far below its historical peak, with only about 1.1-1.2 million barrels a day being extracted. US officials expect investment to eventually push output above 2 million barrels a day, but this will require rebuilding the industry with specialized extraction and processing equipment.

The cost of developing the fields could eventually reach nearly $100 billion, according to NABEP. Chevron has operated in Venezuela since 1923 and plans more than $7 billion of investment over five years, targeting around 600,000 barrels a day through an established joint-venture model.