The Trump administration has granted the Pentagon a 35% equity stake in North American Blue Energy Partners, a private oil company headquartered in Barbados that will control Venezuelan crude reserves through 100-year concessions to 17 oilfields. The deal gives the U.S. majority control over 65 billion barrels of proven reserves, representing about 20% of Venezuela’s estimated reserves, which would make NABEP the world’s second-largest oil company by proved reserves behind Saudi Aramco. The U.S. State Department also has the right to purchase 20% of NABEP’s output at cost and a right of first refusal on the remaining 80%. The operation aims to counter Chinese and Russian influence in Venezuela, as major U.S. oil companies have been hesitant to invest in the country due to its history of nationalizations and the controversial profile of NABEP’s CEO, Alejandro Betancourt. The deal nonetheless raises questions about its legality and long-term viability given political uncertainties in both Washington and Caracas.
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