Full Breakdown
Trump Administration Secures Joint Venture with Venezuelan Oil Firm NABEP
9/2/2026, 11:12:23 AM
Core Deal Overview
On August 31, the White House issued a fact sheet outlining a partnership with North American Blue Energy Partners (NABEP), Venezuela’s second-largest private oil producer. The agreement gives the U.S. Department of Defense’s Office of Strategic Capital a 35 % equity stake in NABEP’s parent and a right-of-first-refusal on the remaining output. The State Department will purchase 20 % of production at cost, yielding an effective 55 % share of the venture’s oil. NABEP receives 100-year concessions for 17 oil fields with ? 65 billion barrels of proven reserves—about one-fifth of Venezuela’s total. The deal obliges NABEP to invest up to $100 billion in new infrastructure.
Background & Context
The arrangement follows the U.S. military operation in January that captured former President Nicolás Maduro and installed his vice-president, Delcy Rodríguez, as interim leader. The partnership is presented as a joint effort among President Donald Trump, Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Rodríguez.
Data & Statistics
- 65 billion barrels of proven reserves (? 21 % of Venezuela’s 303 billion-barrel total).
- 17 oil fields under 100-year lease.
- NABEP’s current output: 170,000–200,000 bbl day?¹.
- U.S. share: 35 % equity + 20 % at-cost off-take = 55 % effective output.
- Investment target: $100 billion for infrastructure upgrades.
- Projected Venezuelan tax revenue: $209 billion over 25 years.
- U.S. Strategic Petroleum Reserve: ~288 million barrels (down from 638 million in early 2021).
- Average U.S. gasoline price: $4.08 per gallon (as of August 24).
Official Statements & Responses
Hegseth emphasized U.S. energy dominance for the next century. Rodríguez asserted that “one thing must be absolutely clear: Venezuela retains ownership and sovereignty over its resources,” and said the deal would generate revenue for Caracas.
Criticism & Opposition
Energy analysts note the fields are largely undeveloped heavy-oil assets requiring massive capital and years to become productive. Radhika Bansal of Rystad Energy said “there’s still a lot of unknowns and confusing elements.” Harvard professor Ricardo Hausmann warned that “Venezuelans will not respect this illegitimate deal and no major US oil company will take it seriously because they know it will not last.” Former Venezuelan oil executive Luis Pachecho called the structure “banana-republic stuff,” questioning its legality.
Conflicting Reports & Gaps
Sources differ on the precise ownership split: some describe a 55 % effective output for the U.S., while others detail a 35 % equity stake plus a 20 % at-cost off-take. The White House fact sheet lists 100-year concessions, yet Rodríguez has spoken of a 25-year bilateral project. No public text of the agreement has been released, leaving the source of the $100 billion investment and the legal authority for a 100-year lease unclear. The timeline for ramping production to the near-term target of more than 1 million barrels per day remains unspecified.
Why It Matters / Impact
If realized, the venture could provide the Pentagon with a strategic source of oil for the Strategic Petroleum Reserve and reduce U.S. reliance on Middle-East supplies. Experts stress that the heavy-oil nature of Venezuelan crude and the dilapidated infrastructure mean any impact on gasoline prices is unlikely in the short term. The deal also signals a broader U.S. geopolitical shift, asserting influence over a resource-rich nation previously aligned with Russia and China.