US, Venezuela Strike Oil Deal Worth Trillions

The US government has reached an agreement with Venezuela to give the US access to approximately 65 billion barrels of recoverable oil in the South American nation. Under the deal, North American Blue Energy Partners (NABEP), a privately held company based in Barbados, will grant the US Department of War a 35% equity stake in its parent company.

The agreement also gives the US government veto power over appointments to NABEP's board of directors and requires a majority of the members to be US citizens. Venezuelan crude produced under the deal will be processed at US refineries, while US drilling rigs and upstream infrastructure will be used to develop the country's oil resources.

Rystad Energy estimates that output from brownfield assets could rise to approximately 157,000 barrels per day by next year and reach about 740,000 barrels per day in the early to mid-2030s. When greenfield developments are included, Venezuelan crude production could climb to 2.3 million barrels per day by 2035 and exceed 3 million barrels per day by 2050.