US to Take Control of Venezuela's Oil Reserves in $100 Billion Deal
Bank of America (BofA) has reported that the U.S. government is planning to take control of Venezuela's oil reserves, a move that represents a significant shift in policy for the country's energy sector.
The plan involves a partnership between the Department of Defense and NABEP, a company owned by Alejandro Betancourt, which would give the U.S. 55% effective output of a new private company.
Under the proposed deal, the U.S. government would take control of 65 billion barrels of oil reserves through a 25-year arrangement covering 17 oil fields.
The investment expected to flow into Venezuela's energy sector is estimated at $100 billion, which could boost output by exceeding 1.5 million barrels per day.
However, BofA has expressed caution over the implications of this deal for Venezuela's defaulted debt, noting that it is unclear how the country would benefit financially from the arrangement.
The bank also highlighted the technical difficulties and costs associated with extracting oil from Venezuela's heavy Orinoco Belt, which often sells at a discount.