US Secures Control Over Venezuela's Oil Reserves Under Neoliberal Deal

The US has struck a deal with Venezuela that grants it majority control over 65 billion barrels of proven oil reserves in Venezuela, more than 20 percent of the country's total.

The agreement, which was presented by the White House as 'the biggest oil deal in world history', would secure the US' energy dominance for the next century and re-establish the Monroe Doctrine, a 19th-century principle exerting US power across South America.

Under the deal, North American Blue Energy Partners (NABEP), a US-backed company, has been granted 100-year concessions for 17 oil fields with proven reserves of approximately 65 billion barrels. The US State Department has the right to purchase 20 percent of oil output at production cost and the right of first refusal on the remaining production.

NABEP plans to invest up to $100 billion in new oil infrastructure in Venezuela, yielding about $209 billion in royalties and taxes over its course at a $65 reference price. However, Rafael Ramírez, former Venezuelan oil minister, questioned the agreement, noting that the projected revenue represents a royalty rate of just 3.7 percent.