US Seeks to Boost Venezuelan Oil Production with New Investment Deal

US Energy Secretary Chris Wright expressed confidence that North American Blue Energy Partners (NABEP) can attract investors to Venezuela through their new crude production agreement.

NABEP, a private operator, is at the center of Washington's deal with Caracas, which aims to rebuild private-sector confidence in the country. Wright emphasized that the arrangement is a partnership to develop reserves rather than a US takeover of Venezuelan oil.

Under the agreement, NABEP will have operational control while the US government takes a 35% interest and has preferential access to purchase 20% of production at cost. Wright acknowledged that NABEP's leader, Alejandro Bettencourt, had faced money laundering and embezzlement charges in the past but described him as 'a very competent operator.'

NABEP plans to invest nearly $100 billion to expand its operations and lift oil production above 1 million b/d. Wright predicted that Venezuelan production would rise 50% within 12-18 months, exceeding 2 million b/d by the end of the decade.