A Venezuelan flag flies in front of an oil tanker on Lake Maracaibo, Venezuela, on July 27, 2026. José Isaac Bula | Anadolu | Getty Images Venezuelan interim authorities have awarded US-backed North American Blue Energy Partners (NABEP) 100-year concessions for 17 oil fields, with proven reserves of around 65 billion barrels, the White House said on Monday. NABEP is the second largest private oil producer in Venezuela. The company has granted the US War Department’s Office of Strategic Capital a 35% stake in its parent company, according to the White House, representing up to “hundreds of billions in value and dividends to the United States.” President Donald Trump on Friday announced a deal with Caracas that would give the American majority control of 65 billion barrels, or about 20% of the South American nation’s huge oil reserves. The United States had about 46 billion barrels in proven oil reserves at the end of 2024, according to official figures. In a fact sheet published late Monday in the United States, the U.S. government said it would enjoy the right to purchase, at production cost, a guaranteed 20% of the output from all current and future fields to be operated by NABEP, as part of an effort to facilitate the replenishment of America’s strategic oil reserves. The US government also has the “right of first refusal” to purchase the remaining 80% of NABEP’s output, making Washington the priority buyer of its energy reserves. Analysts, however, were skeptical that the landmark oil deal could significantly boost U.S. energy production and reduce gas prices for Americans any time soon. Huge investments are needed to extract the rich resources of Venezuela, whose oil production remains a fraction of its capacity due to decades of mismanagement, lack of investment and sanctions. NABEP also plans to invest up to $100 billion in new oil infrastructure in Venezuela to scale production, the White House said. Under the agreement, the company is expected to pay $200 billion in royalties and taxes to Venezuelan governments over the first 25 years. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
