Venezuela Grants Century-Long Oil Concessions to US Company

The Venezuelan government has signed an oil deal with American energy company North American Blue Energy Partners (NABEP), granting them 100-year concessions to operate 17 oil fields containing over 65 billion barrels of proven reserves. In return, NABEP will grant the US government a 35% stake in its parent company and other significant concessions.

The deal has sparked controversy, with critics arguing that it binds the US to century-long rights issued by an unelected government and gives Washington a financial interest in keeping President Nicolás Maduro's regime in power. Proponents of the deal say it could secure heavy crude for American refineries, reduce Chinese and Russian influence in Venezuela, and attract much-needed capital to repair the country's oil industry.

The history of US involvement in Venezuela's oil industry is complex. In 1976, the government nationalized the oil sector, creating state-owned company PDVSA. Under Hugo Chávez and Maduro, the industry was further ravaged by mismanagement, corruption, and neglect. Today, Venezuela produces about a third of what it did under Chávez.