US Strikes Deal to Control Venezuela's Oil Reserves
The United States has struck a deal with Venezuela to control its oil reserves, according to US President Donald Trump. The agreement, which Trump called the 'biggest oil deal in world history', aims to double US oil reserves and lower fuel prices for Americans.
Under the terms of the deal, Venezuela's interim president Delcy Rodríguez has granted 100-year concessions to develop 17 oil fields to a joint venture between the US government and North American Blue Energy Partners. This company is led by Venezuelan businessman Alejandro Betancourt López, who has ties with Rodríguez.
The deal requires that a majority of North American Blue Energy Partners' board members be US citizens, and gives the US government veto power over the board of directors. The US-backed company will take a 35% equity stake in North American Blue Energy Partners.
While the deal has the potential to increase oil production and exports from Venezuela, experts warn that it may take years for significant results to be seen. Rystad Energy estimates it could take until the mid-2030s to reach full production for existing oil fields, and at least $100 billion in investment to bring new supply online.